Wall Street's main indexes were almost flat on Tuesday as gains in megacaps such as Coca-Cola and Apple offset losses in some growth stocks, while investors parsed Federal Reserve Chair Jerome Powell's latest comments.
Powell said in opening remarks at a Senate Banking Committee hearing that the central bank was in no rush to cut its short-term interest rate again given the economy was "strong overall", with low unemployment and inflation still above the Fed's 2% target.
"While there was no explicit mention of tariffs in Powell's statement – nor in the communication surrounding last month's decision – the erratic policymaking of President Trump is sure to be playing on the minds of policymakers as they contemplate their next steps," said Bradley Saunders, North America economist at Capital Economics.
Investors are on the lookout for any new tariff comments from President Donald Trump, a day after he substantially raised levies on imports of steel and aluminum, and said there would be announcements over the next two days about reciprocal tariffs on all countries that impose duties on U.S. goods.
Powell's Senate testimony is the first of two days of hearings on Capitol Hill. He is set to speak to the House Financial Services Committee on Wednesday.
The January consumer price index (CPI) data is set to be released at 8:30 a.m. ET on Wednesday, before Powell's appearance.
Traders expect at least one 25-basis-point rate cut from the Fed this year, and a 44% chance of another reduction of the same magnitude, according to LSEG data.
Helping offset declines, Apple added 2.7% after a report said it was partnering with Alibaba to develop and roll out artificial intelligence features for iPhone users in China.
At 11:21 a.m. ET, the Dow Jones Industrial Average rose 30.99 points, or 0.07%, to 44,503.06, the S&P 500 gained 0.36 points, or 0.01%, to 6,066.89 and the Nasdaq Composite lost 16.92 points, or 0.09%, to 19,696.93.
Energy stocks led gains among the major S&P sub-sectors, adding close to 1% as crude oil prices remained elevated.
Phillips 66 rose 5.3% after activist Elliott Investment Management said it had built a stake of more than $2.5 billion in the oil refiner.
Earnings
DuPont de Nemours jumped 7.2% after the industrial materials maker raised its 2025 profit forecast on strong demand for electronics.
Coca-Cola advanced 3.3% as the beverage maker beat fourth-quarter revenue estimates, helped by higher prices and resilient demand for its sodas and juices.
Water technology firm Ecolab jumped 7.9% after the company forecast higher-than-expected adjusted profit for 2025.
Fidelity National Information Services dropped 16.8% after the banking and payments processing conglomerate forecast first-quarter profit below estimates.
Declining issues outnumbered advancers by a 1.2-to-1 ratio on the NYSE and by a 1.5-to-1 ratio on the Nasdaq.
The S&P 500 posted 11 new 52-week highs and 15 new lows while the Nasdaq Composite recorded 37 new highs and 163 new lows.
(Reporting by Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Devika Syamnath)
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