S&P 500, Nasdaq Post New Record Highs Thanks to Fed Powell's Caution on Keeping Rates High | Wall Street Today

Moomoo Recap US joined discussion · Jul 10, 2024 04:48

S&P 500, Nasdaq Post New Record Highs Thanks to Fed Powell's Caution on Keeping Rates High | Wall Street Today

The S&P 500 and Nasdaq reached new record highs on Tuesday after Federal Reserve Chair Jerome Powell warned about the risks of keeping interest rates high for too long.

Powell will continue testimony this week before Congress on Wednesday before the House Financial Services Committee.

The $Nasdaq Composite Index (.IXIC.US)$ added 0.14% to close at 18429.29, and the $S&P 500 Index (.SPX.US)$ gained 0.07%. Both indexes closed at fresh reocrd highs. The $Dow Jones Industrial Average (.DJI.US)$ fell 0.13%, ending at 39291.97.

MACRO

Federal Reserve Chair Jerome Powell suggested the central bank was focusing greater attention on when to cut interest rates now that inflation has resumed a decline and the labor market is showing signs of cooling off.

Fed officials are trying to balance two risks. One is that they move too slowly to ease policy and the economy crumples under the weight of higher interest rates. The other is that lower rates ignite economic activity and allow inflation to settle out above their goal.

SECTORS

Oil dropped in a session marked by wild price swings as traders dissected Federal Reserve Chair Jerome Powell’s testimony to Congress.

West Texas Intermediate fell 1.1% tp settle below $82 a barrel as thin liquidity exacerbated price swings within a roughly $1 range.

MOOVERS

$Tesla (TSLA.US)$ stock rose 3.7% Tuesday, marking a ten-day winning streak

$UiPath (PATH.US)$ stock was falling 6.9% Tuesday after the software company announced it is cutting 10% of its global workforce.

On Tuesday, KeyBanc analyst John Vinh reiterated his Overweight rating on $NVIDIA (NVDA.US)$ stock and raised his price target to $180 from $130, citing strong demand for the highest-end server model of its new Blackwell GPU product line. The stock gained 2.5%.

Shares of $Koss Corp (KOSS.US)$ continued their slide Tuesday, falling 5.4% after ending Monday’s session down 21.4%.

Source: CNBC, Bloomberg, MarketWatch

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