The US markets closed choppy trading day mostly in red on Tuesday, while the Dow Jones Industrial Average settled at record high, after the news that the US, Canada and Mexico have reached a new free trade deal to replace the North American Free Trade Agreement (NAFTA). The lackluster performance on Wall Street came as traders seemed reluctant to make significant moves amid a quiet day on the US economic front. Also, lingering uncertainty about trade also kept some traders on the sidelines. Meanwhile, reports of the last-minute cancellation of US Defense Secretary Jim Mattis’ trip to China have added to the concerns about rising tensions.
Traders were cautious as Federal Reserve Chairman Jerome Powell delivered remarks at the annual meeting of the National Association for Business Economics in Boston. Powell acknowledged concerns about the outlook for inflation due to the low unemployment rate but said the Fed stands ready to act with authority if inflation expectations drift materially up or down. Powell said this historically rare pairing of steady, low inflation and very low unemployment is testament to the fact that they remain in extraordinary times. He added their ongoing policy of gradual interest rate normalization reflects their efforts to balance the inevitable risks that come with extraordinary times, so as to extend the current expansion, while maintaining maximum employment and low and stable inflation.
Nasdaq declined 37.76 points or 0.47 percent to 7,999.55 and the S&P 500 fell 1.16 points or 0.04 percent to 2,923.43, while Dow Jones Industrial Average gained 122.73 points or 0.46 percent to 26,773.94.
