US close: Stocks end session in the green following Powell testimony

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america 2 — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks closed higher on Tuesday as market participants digested testimony from Federal Reserve chairman Jerome Powell on Capitol Hill.

At the close, the Dow Jones Industrial Average was up 0.51% at 36,252.02, while the S&P 500 was 0.92% firmer at 4,713.07 and the Nasdaq Composite saw out the session 1.41% stronger at 15,153.45.

The Dow closed 183.15 points higher on Tuesday, reversing losses recorded in the previous session.

Tuesday's primary focus was Federal Reserve chairman Jerome Powell's confirmation hearing on Capitol Hill, where he told the Senate Banking Committee that the post-pandemic economy was likely to be "different in some respects".

"The pursuit of our goals will need to take these differences into account. To that end, monetary policy must take a broad and forward-looking view, keeping pace with an ever-evolving economy," said Powell.

Also from the central bank, Kansas City Fed president Esther George said the central bank should soon begin to reduce holdings of US Treasury bonds and mortgage-backed securities accumulated during the Covid-19 pandemic.

"My own preference would be to opt for running down the balance sheet earlier rather than later as we plot a path for removing monetary accommodation," said George.

On the macro front, the National Federation of Independent Business' small business optimism index rose modestly in December, increasing 0.5 points to 98.9 despite growing concerns about inflation and worker shortages.

No major corporate earnings were released on Tuesday.

Dow Jones - Risers

Boeing Co. (BA) $216.02 3.21%
Chevron Corp. (CVX) $127.83 2.29%
Salesforce.Com Inc. (CRM) $234.84 2.27%
Apple Inc. (AAPL) $175.08 1.68%
Dow Chemical Co. (DOW) $59.20 1.34%
Visa Inc. (V) $214.38 1.14%
Walgreens Boots Alliance, Inc. (WBA) $54.33 1.12%
Goldman Sachs Group Inc. (GS) $403.05 0.97%
American Express Co. (AXP) $175.38 0.94%
Cisco Systems Inc. (CSCO) $62.37 0.89%