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US markets settle mostly higher after Powell testimony

12 Feb 2025 Evaluate

The US markets settled mostly in green on Tuesday as traders digested congressional testimony by Federal Reserve Chair Jerome Powell. Powell delivered his semiannual monetary policy testimony before the Senate Banking Committee, reiterating his belief that the central bank does not need to be in a hurry to adjust its policy stance. Powell noted interest rates have been lowered by a full percentage point since last September, describing the Fed's current policy stance as significantly less restrictive than it had been. The Fed chief reiterated that the central bank will assess incoming data, the evolving outlook, and the balance of risks in considering the extent and timing of additional adjustments to interest rates. Powell also suggested the Fed has options in determining the future path for rates depending on how the economy evolves.

However, traders were cautious amid lingering concerns about a global trade war after President Donald Trump officially announced tariffs on U.S. steel and aluminum imports. On the sectoral front, networking and computer hardware stocks saw considerable weakness on the day, contributing to the decrease by the tech-heavy Nasdaq. Gold and biotechnology stocks also showed notable moves to the downside, while oil producer stocks moved higher along with the price of crude oil.

Dow Jones Industrial Average rose 123.24 points or 0.28 percent to 44,593.65 and S&P 500 was up by 2.06 points or 0.03 percent to 6,068.5, while Nasdaq fell 70.41 points or 0.36 percent to 19,643.86.


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