Major United States averages closed Tuesday's session (Wednesday AEDT) in a mixed fashion as investors digested Federal Reserve Chair Jerome Powell’s measured stance on interest rates and assessed ongoing trade tensions.
The Dow Jones Industrial Average gained 123.2 points, or 0.3%, finishing at 44,593.7. The S&P 500 inched up just 0.03% to close at 6,068.5, while the Nasdaq Composite slipped 0.4% to 19,643.9.
Apple rose 2.2% after reports suggested the tech giant is partnering with Alibaba to develop artificial intelligence features for iPhone users in China, helping limit broader market losses.
Additionally, Coca-Cola rose 4.7% after surpassing fourth-quarter revenue estimates, driven by higher prices and steady demand for its sodas and juices.
Tesla dropped 6.3% after Chinese rival BYD revealed a partnership with DeepSeek to develop autonomous vehicle technology.
Meanwhile, addressing the Senate Banking Committee, Powell indicated that the Fed sees no immediate need to alter its monetary policy stance, given the economy’s resilience.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said in the first of two scheduled Capitol Hill appearances this week.
He described the economy as "strong overall," with a “solid” labour market, though he noted that inflation, while easing, remains above the Fed’s 2% target.
Powell is set to testify before the House Financial Services Committee on Wednesday, with markets closely watching for further insights on the central bank’s rate outlook.
Trade tensions remained in focus after former President Donald Trump signed fresh tariffs on all steel and aluminium imports into the U.S. The European Union swiftly responded, warning of retaliatory measures if Washington imposes additional levies on EU products.
Traders are now looking ahead to key inflation readings, with the latest Consumer Price Index (CPI) Producer Price Index (PPI) reports due later in the week.
On the bond markets, 10-year and 2-year rates lifted 0.8% and 0.3% to 4.539% and 4.29%, respectively.
