The trader works on the floor of the New York Stock Exchange on February 4, 2025.
NYSE
Stocks were largely unchanged on Tuesday as investors diluted a careful commentary from Federal Reserve Chair Jerome Powell on interest rates. With the potential escalation of the US tariffs and the world trade war, concerns remain in the direction of the economy.
S&P 500 Add less than 0.1% Nasdaq Composite It flows almost 0.3%. Dow Jones Industrial Average Hovered under the flatline.
Apple has won over 2.5% after it reported that it partnered with Alibaba to develop AI features for iPhone users in China, curbing market losses.
Powell previously addressed the Senate Banking Committee, signaling that there is no need to move quickly to ease monetary policy.
“Our policy stance is significantly less restrictive than ever and the economy remains strong, so there's no need to rush to adjust policy stance,” Powell made two appearances this week He spoke in his first appearance. The central bank leader called the economy “strong overall” in a “solid” labor market, saying that inflation has been eased but exceeded the Fed's 2% target.
Powell's testimony continues his appearance before the House Financial Services Committee on Wednesday – in Washington, President Donald Trump supports tariffs on US trading partners, bringing mixed messages coming from the administration with his approach to the Fed. It will come at unstable times including. .
Trump signed new tariffs on all steel and aluminum imports into the United States on Monday. The European Union responded that if the US tackles tariffs on products from the country's bloc, it would retaliate with its own tax collection.
Investors are looking forward to fresh inflation data in the form of the latest consumer price index report scheduled for Wednesday, but the producer price index will occur on Thursday.
“The market is stepping on the water, and I really think we're listening to Powell and waiting for what tomorrow's CPI will bring,” said Sam Stoval, CFRA's research chief investment strategist. . “I believe they are really going to make prices higher based on income growth where investors don't expect multiple expansions in P/E.”
“The only concern about revenue is that some of the enthusiasm for this quarter is the result taken from estimates for the next quarter,” added Stovall. “The issue we'll have to look at in the coming months is that we've seen an accelerated ordering ahead of the expected Trump tariffs, which has artificially helped the emergence of economic improvements, right? Shall I get it?”
