The US markets ended mostly higher on Tuesday, however overall trading activity was subdued, as traders looked ahead to Powell’s testimony, hoping for signs of a near-term interest rate cut. Powell is due to testify before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday. The Fed chief is not likely to specifically lay out the central bank's plans to lawmakers, but traders are likely to closely analyze his comments for clues about the outlook for rates. Wednesday will also see the release of the minutes of the Fed's last monetary policy meeting, which may shed additional light on the central bank's decision to make notable changes to its accompanying statement.
Besides, a notable drop by 3M (MMM) weighed on the markets, with the diversified manufacturer sliding by 2.1 percent after RBC Capital Markets downgraded its rating on the company's stock to Sector Perform from Outperform. Besides, trade policy concerns may also be weighing on market sentiment, after the US announced new preliminary tariffs on certain steel imports from Mexico and China, pending an investigation into subsides, with a final decision due in November. The US and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.
Nasdaq surged 43.35 points or 0.54 percent to 8141.73 and S&P 500 was up by 3.68 points or 0.12 percent to 2979.63, while Dow Jones Industrial Average slipped 22.65 points or 0.08 percent to 26783.49.
