US close: Stocks mixed following Powell testimony

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Major indices delivered a mixed performance on Tuesday as Federal Reserve chairman Jerome Powell headed to Washington DC to testify before the Senate Banking Committee.

At the close, the Dow Jones Industrial Average was down 0.13% at 39,291.97, while the S&P 500 advanced 0.07% to 5,576.98 and the Nasdaq Composite saw out the session 0.14% stronger at 18,429.29.

The Dow opened 52.82 points lower on Tuesday, extending losses recorded in the previous session.

The head of US central bank told lawmakers again on Tuesday that policymakers needed "greater confidence" that inflation was headed permanently lower before they could interest rates.

In remarks prepared for his semi-annual testimony before Congress, Jerome Powell also said that the risks towards the Fed's two goals of full employment and stable inflation were "coming into better balance". His testimony will continue on Wednesday.

On the macro slate, the National Federation of Independent Business' business optimism index rose to 91.5 in June, up from 90.5 a month earlier, for the highest reading since the start of 2024. The reading came in ahead of expectations for a slowdown to 89.5 but remained well and truly below the long-term average of 98.

NFIB chief economist Bill Dunkelberg said: "Main Street remains pessimistic about the economy for the balance of the year. "Increasing compensation costs has led to higher prices all around. Meanwhile, no relief from inflation is in sight for small business owners as they prepare for the uncertain months ahead."

In the corporate space, BP shares were sharply lower after the energy giant warned investors that it would be faced with an impairment charge of between $1.0bn and $2.0bn. It also warned of lower refining margins in Q2.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $34.59 1.77%
Goldman Sachs Group Inc. (GS) $472.82 1.72%
Amgen Inc. (AMGN) $315.91 1.43%
American Express Co. (AXP) $237.48 1.27%
JP Morgan Chase & Co. (JPM) $207.65 1.21%
Johnson & Johnson (JNJ) $146.91 0.98%
Unitedhealth Group Inc. (UNH) $491.94 0.53%
Apple Inc. (AAPL) $228.68 0.38%
Walmart Inc. (WMT) $69.90 0.32%
Merck & Co. Inc. (MRK) $126.04 0.21%