By Jon Sindreu and Jon Sindreu The Wall Street Journal Biography @jonsindreu [email protected] Allison Prang Allison Prang The Wall Street Journal Biography @allisonprang [email protected] Updated July 17, 2018 5:29 p.m. ET 1 COMMENTS
U.S. stocks rose Tuesday following Federal Reserve Chairman Jerome Powell’s Senate testimony, while investors also continued dissecting the latest round of corporate earnings results.
The Dow Jones Industrial Average added 55.53 points, or 0.2%, to 25119.89. The S&P 500 rose 11.12 points, or 0.4%, to 2809.55, and the technology-focused Nasdaq Composite climbed 49.40 points, or 0.6%, to 7855.12.
Mr. Powell told Congress that strong economic growth and stable inflation should keep the central bank on track to gradually raise short-term interest rates.
He added he wants inflation to stay around 2% and that the economy is “just shy” of hitting that point. He also touched on trade tensions, saying he thought countries that are open to trade have grown more quickly and commented on the new tax law, saying it was too early to see its impact.
Mr. Powell’s remarks were made before the Senate Banking Committee as part of his semiannual monetary policy report. Derivatives markets were pricing in a 62% chance that rates will rise at least twice more this year, according to data by CME Group.
Fed Chairman Jerome Powell arriving to testify before the Senate Banking Committee Tuesday. Photo: Jose Luis Magana/Associated Press
Quincy Krosby, chief market strategist for Prudential Financial, said Mr. Powell’s comments demonstrated the Fed is following