Stock market today: S&P 500 set to build on record high as Powell kicks off semiannual testimony
What did Jerome Powell say about inflation in his testimony?
In his testimony, Federal Reserve Chair Jerome Powell said he was encouraged by evidence of cooler inflation, but the Fed still needs more "good data" to be confident that inflation is moving towards its 2% target. He warned that cutting rates too fast or too soon would threaten the "modest" progress on inflation.
How did the S&P 500 perform on Tuesday?
The S&P 500 performed well on Tuesday, reaching a fresh record high. The broad market index added 0.1%, driven by technology stocks and positive investor sentiment. This comes as Federal Reserve Chair Jerome Powell hinted at the possibility of interest rate cuts in the future, boosting market optimism1.
What are traders' expectations for Fed rate cuts this year?
Traders are placing bets on the Federal Reserve cutting interest rates twice this year. The expectation is that the first rate cut will occur in September. This comes as recent economic data has been mixed, with some indicators pointing to a potential slowdown, while others show continued economic resilience.