Wall Street's Mixed Reaction to Economic Data Signals

Wall Street ended Tuesday with mixed reactions as Federal Reserve Chair Jerome Powell indicated that positive economic data could lead to interest rate cuts. Nvidia's gains offset declines in other chip stocks, while Tesla surged and Microsoft fell. Major banks like JPMorgan, Wells Fargo, and Citi saw gains ahead of their quarterly earnings reports.

Wall Street ended mixed on Tuesday following statements by U.S. Federal Reserve Chair Jerome Powell, who suggested that improved economic data could bolster the case for rate cuts. Nvidia saw significant gains, balancing losses in other chip stocks.

Tesla's stock rose, whereas Microsoft experienced a decline. Powell, speaking before Congress, mentioned that inflation remains above the Fed's 2% target but is improving. He noted that positive economic data would support the case for future interest-rate cuts but did not indicate any imminent changes.

Despite Powell's cautious stance, market pricing still suggests a 50 basis points reduction this year. Major banks JPMorgan, Wells Fargo, and Citi gained ahead of their quarterly earnings reports, anticipated to mark the beginning of the earnings season. The S&P 500 and Nasdaq Composite index both saw slight gains, while the Dow Jones fell. AI firm Tempus also rose after receiving positive ratings from major financial institutions.

(With inputs from agencies.)