US close: Markets mixed as investors weigh Powell comments, tariff uncertainty

“It’s been a more subdued day for markets as investors waited to hear from Fed chair Jerome Powell,” said Danni Hewson, head of financial analysis at AJ Bell. “In the end he maintained his carefully balanced ‘wait and see’ stance, stopping short of addressing the issue of tariffs".

The Dow rose 0.3% to 44,593.65, the S&P 500 finished flat at 6,068.50, while the Nasdaq fell 0.4% to 19,643.86.

The continued news of new tariffs from the White House continues to weigh heavily on risk appetite, after Donald Trump at the weekend raised import duties on steel and aluminium, with both levies set to come into effect on 4 March.

Meanwhile, Powell's Congress testimony was also making headlines after the central bank head left the door open for more interest rate cuts but said the Fed was in no hurry to act.

Powell struck an upbeat tone on the economy, calling it "strong overall" with a "solid" job market and also noted that the labour market condition had cooled and was "not a source of significant inflationary pressures".

The Fed chair also acknowledged that inflation has "moved much closer" to its 2% longer-run goal but "remains somewhat elevated". He also noted the Fed was not considering changing its 2% PCE inflation target in its policy framework review.

"There’s no chance central bankers aren’t considering the potential inflationary spike that could result from Donald Trump’s global trade policies," Hewson said. "Just like everyone else, central bankers will be acutely aware of the difficulties in plotting a course when the map keeps being redrawn.”

In economic news, optimism among US small businesses retreated from a six-year high in January, with uncertainty on the rise, according to the National Federation of Independent Business. The NFIB's monthly Small Business Optimism Index came in at 102.8 last month, down from 105.1 in December, which was the highest mark since late-2018. The consensus forecast was for a reading closer to 104.6. Nevertheless, January was the third straight month of a print above the 51-year average of i98.

Market movers

Shares in Phillips 66 rose strongly after Activist Elliott Investment Management reportedly built a more than $2.5bn stake in the energy company and plans to push the oil refiner to consider operational changes to boost its stagnant stock.

Tesla's share price dropped nearly 7% to finish at its lowest level since mid-November after a consortium led by its billionaire founder Elon Musk put forward a $97.4bn bid to purchase the non-profit organisation that controls artificial intelligence startup OpenAI. .

Cereal manufacturer WK Kellogg finished flat after delivering a mixed set of quarterly results as sales fell short of forecasts but profits smashed estimates.

Meanwhile, Coca-Cola was rising strongly after fourth-quarter sales and profits from the soft drinks giant beat market forecasts on the back of improvements in pricing and volume growth.

Dow Jones - Risers

Intel Corp. (INTC) $20.97 7.51%
Coca-Cola Co. (KO) $67.61 4.73%
International Business Machines Corporation (CDI) (IBM) $254.70 2.18%
Amgen Inc. (AMGN) $296.61 2.00%
JP Morgan Chase & Co. (JPM) $274.99 1.46%
Apple Inc. (AAPL) $232.62 1.42%
Verizon Communications Inc. (VZ) $40.48 1.33%
Johnson & Johnson (JNJ) $156.17 1.25%
Procter & Gamble Co. (PG) $169.49 1.17%
Chevron Corp. (CVX) $157.39 1.04%

Dow Jones - Fallers

Walgreens Boots Alliance, Inc. (WBA) $9.36 -6.63%
Salesforce.Com Inc. (CRM) $324.56 -0.81%
Goldman Sachs Group Inc. (GS) $647.24 -0.51%
Walmart Inc. (WMT) $102.47 -0.44%
Microsoft Corp. (MSFT) $411.44 -0.28%
Walt Disney Co. (DIS) $109.02 -0.24%
Cisco Systems Inc. (CSCO) $62.43 -0.22%
American Express Co. (AXP) $309.57 -0.22%
Caterpillar Inc. (CAT) $362.75 -0.13%
Visa Inc. (V) $350.82 -0.12%

S&P 500 - Risers

Intel Corp. (INTC) $20.97 7.51%
Ecolab Inc. (ECL) $261.11 6.17%
S&P Global Inc Com (SPGI) $541.12 5.01%
Phillips 66 Common Stock (PSX) $129.75 4.88%
Apache Corp. (APA) $23.31 4.76%
Coca-Cola Co. (KO) $67.61 4.73%
Mondelez International Inc. (MDLZ) $60.46 4.58%
FMC Corp. (FMC) $36.45 3.85%
Advance Auto Parts (AAP) $46.87 3.60%
Tractor Supply Company (TSCO) $54.97 3.52%

S&P 500 - Fallers

Fidelity National Information Services Inc. (FIS) $73.16 -11.49%
Coty Inc. Class A (COTY) $6.15 -9.16%
Ipg Photonics Corp. (IPGP) $63.72 -8.98%
Walgreens Boots Alliance, Inc. (WBA) $9.36 -6.63%
Regeneron Pharmaceuticals Inc. (REGN) $665.46 -6.49%
Incyte Corp. (INCY) $66.32 -5.47%
Nektar Therapeutics (NKTR) $0.66 -5.43%
Marriott International - Class A (MAR) $288.00 -5.39%
AES Corp. (AES) $10.23 -4.84%
Fluor Corp. (FLR) $47.84 -4.59%

Nasdaq 100 - Risers

Intel Corp. (INTC) $20.97 7.51%
Mondelez International Inc. (MDLZ) $60.46 4.58%
Kraft Heinz Co. (KHC) $29.61 2.99%
Adobe Systems Inc. (ADBE) $458.82 2.72%
Broadcom Inc. (AVGO) $235.04 2.63%
Monster Beverage Corp (MNST) $48.06 2.19%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $374.53 2.15%
Electronic Arts Inc. (EA) $133.35 2.13%
Amgen Inc. (AMGN) $296.61 2.00%
Comcast Corp. (CMCSA) $35.22 1.91%

Nasdaq 100 - Fallers

Tesla Inc (TSLA) $328.50 -6.73%
Walgreens Boots Alliance, Inc. (WBA) $9.36 -6.63%
Regeneron Pharmaceuticals Inc. (REGN) $665.46 -6.49%
Incyte Corp. (INCY) $66.32 -5.47%
Marriott International - Class A (MAR) $288.00 -5.39%
Workday, Inc. (WDAY) $263.00 -4.47%
Expedia Group Inc. (EXPE) $197.15 -4.19%
Trip.com Group Limited (TCOM) $65.69 -4.17%
Baidu Inc. (BIDU) $89.44 -4.03%
Illumina Inc. (ILMN) $100.65 -3.18%