Investing.com--The S&P 500 eked out a win Tuesday, though gains were kept in check after Federal Reserve Chairman Jerome Powell’s said the Fed isn’t in a rush to cut rates rates at a time when many are concerned that President Donald Trump’s tariffs could fuel inflation.
At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average rose 123 points, or 0.3%, the S&P 500 index rose 0.1%, and the NASDAQ Composite slipped 0.4%.
Powell says Fed in no rush to cut rates again; inflation data eyed
Powell told the Senate Banking committee Tuesday that there wasn’t a need for the Fed to "to be in a hurry" to lower interest rates as monetary policy is already less restrictive and the economy remains strong.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to adjust our policy stance,” Powell said.
The remarks echoed that of recent Fed members and the Powell’s remarks at the FOMC January press conference, when the Fed kept interest rates hold.
Treasury yields climbed following the remarks as bets on a rate cuts dwindled, with the Fed now is expected to stand pat on rates at the March meeting, according to Investing.com’s Fed Rate Monitor Tool.
Powell is set to testify before Congress on Wednesday, where many are expecting him to face several questions about the Trump’s policy impacts on the economy and inflation.
The testimony will arrive on the heels of a fresh inflation report expected to show cooling headline inflation, but rising core inflation.
In December, consumer prices rose by 2.9% year-on-year, above the central bank’s target level of 2%.
Trump signs orders on steel, aluminum tariffs
President Trump followed up his threat late on Monday, and signed executive orders imposing 25% tariffs on steel and aluminum imports, while also stating that there would be no exceptions to the duties.
Major steel exporters such as Canada, Mexico, and Brazil were subject to some quota-based tariff exceptions, which will now be revoked.
Trump warned that tariffs on metals could go higher, and that he was considering tariffs on cars, chips, and pharmaceuticals. The president also flagged plans to raise U.S. import tariffs to match foreign duties on the import of U.S. goods.
Investors are now gauging if Trump will follow through on a separate threat to impose reciprocal tariffs, with worries swirling around a potential increase in international trade tensions.
Earnings continue to flow; Coca-Cola the highlight
The fourth-quarter earnings season is more than halfway finished, with S&P 500 firms projected to have delivered income growth versus the year-ago period of 14.8%, up from estimates of less than 10% at the outset of 2025.
On the earnings front, Coca-Cola (NYSE:KO) rose nearly 5% after the soft drinks giant beat estimates for fourth-quarter profit and revenue, helped by resilient demand for its sodas and juices and higher prices.
Shopfiy (NYSE:SHOP) stock was ended 3% higher after e-commerce company’s posted better-than-expected holiday-quarter sales on the back of healthy consumer spending and its rollout of AI features, overshadowing its downbeat first-quarter profit outlook.
Marriott International (NASDAQ:MAR) stock fell more than 5% after the hospitality company forecast 2025 profit below estimates, hurt by poor performance at its hotels in Greater China.
WK Kellogg (NYSE:KLG) stock rose 4% after the breakfast cereal maker forecast annual profit above expectations and reported better-than-expected earnings as its efforts to clamp down on costs boosted its margins.
(Peter Nurse, Ambar Warrick contributed to this article.)