Federal Reserve Chair Jerome Powell’s comments on the future path of monetary policy impacted major indexes on Tuesday. Despite this, Tesla (TSLA) saw a surge in its stock following an impressive deliveries beat, while Amazon.com (AMZN) remained steady despite optimistic predictions. Super Micro Computer (SMCI) also saw positive gains early in the stock market trading.
The Dow Jones Industrial Average experienced a slight decline, while the Nasdaq composite showed a modest increase. Notably, chip stock ON Semiconductor (ON) performed well with a rise of over 2%. The S&P 500 was close to breaking even, with Super Micro Computer standing out with a 3% increase, while Eli Lilly (LLY) lagged behind with a 3% drop.
Consumer discretionary and real estate sectors performed well within the S&P 500, while technology and health care sectors faced challenges. Small caps, including the Russell 2000 and the Innovator IBD 50 ETF (FFTY), showed mixed results.
Fed Chair Powell highlighted the progress made in lowering inflation rates and mentioned the importance of sustained growth and a strong labor market. He emphasized the need for more data to confirm a downward trend in inflation before considering changes to monetary policy.
Apple led the Dow Jones Industrial Average with a nearly 1% gain, while 3M (MMM) and Honeywell International (HON) also performed positively. Nike (NKE) and Verizon Communications (VZ) experienced declines.
Tesla’s strong delivery performance in the second quarter resulted in a nearly 5% surge in its stock price. This was driven by surpassing delivery expectations and achieving the highest quarterly deployment of energy storage products. Additionally, Amazon was named a top pick due to its potential in AI projects, leading to a price target increase.
Overall, the stock market saw fluctuations in various sectors and individual stocks, with investors closely monitoring the impact of Fed Chair Powell’s remarks on future monetary policy decisions.
