The S&P 500 closed at a record high for the fifth-straight session on Tuesday, rising 0.1% to 5,577.03. Despite Federal Reserve Chair Jerome Powell’s testimony indicating a cooling labour market and cautioning against high rates, investors remain optimistic about a potential rate cut in September. The NASDAQ Composite added 0.2%, while the Dow Jones fell by 53 points.
Powell’s remarks bolstered bets on a September rate cut, with the CME Fedwatch tool showing a 72% chance for a 25 basis point cut. The upcoming consumer price index data for June will offer further inflation insights.
The second-quarter earnings season starts with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting on Friday. Analysts expect a 10.1% increase in S&P 500 earnings per share. Nvidia and Tesla saw gains, while Helen of Troy plunged 27% after missing earnings estimates.