In this context, the Dow Jones industrial average closed at 39,331.85 points, gaining 0.41%, the S&P500 stood at 5,509.01 points, up 0.62%, and the Nasdaq Composite appreciated 0.84% to 18,028.76 points.
Powell needs more confidence to cut rates
Fed Chairman, Jerome Powellsaid that the Institution has achieved “a lot of progress and has managed to reduce inflationn” toward the central bank’s target, though he added that he would need to feel more confident about a sustained downward path before the rate-cutting process begins. The comments come just a day before minutes of the Federal Reserve’s June meeting are due to be released and more labor market data is due, with nonfarm payrolls due on Friday.
Meanwhile, Chicago Federal Reserve Bank President Austan Goolsbee said Tuesday that he sees some “warning signs” of weakening in the economy and added that the US central bank’s goal is to slow inflation without stressing the labor market.
“I see some warning signs that the real economy is weakening,” Goolsbee told CNBC in an interview after a European Central Bank conference in Sintra, Portugal.
As indicatedif inflation continues along the path of recent monthswould have more confidence that it is heading toward the Fed’s 2% target, the hurdle it has set for cutting interest rates.
As inflation falls, he added, Fed policy tightens by default. “It only wants to stay this tight for as long as it needs to,” he said.
What is known before it is official
Ahead of the monthly employment report, May job openings and the labor turnover report, a gauge of labor demand showed there were 8.14 million job openings, up from 7.92 million in April and above economists’ forecast of 7.96 million.
The labor sector has been performing despite resilient inflation and high interest rates, and is also a key consideration for the Federal Reserve when it comes to cutting rates.
The highlights of the stock sector
Tesla gains traction after better-than-expected second-quarter deliveries. The automaker rose nearly 10% after the electric vehicle maker said it delivered 443,956 electric vehicles in the second quarter, beating estimates of 438,019.
Better-than-expected deliveries in the second quarter marked “a great recovery” by the electric vehicle manufacturer, and the worst is now likely in the rearview mirror for the company, Wedbush Securities said Tuesday.
The update on deliveries comes just weeks ahead of Tesla’s second-quarter results, due on July 23, and its RoboTaxi Day on Aug. 8, Wedbush added, with the latter event expected to see the EV maker tout the next part of its autonomous story.
Paramount Global: Is it for sale or a partnership?
Paramount Global rose more than 8% after The New York Times reported that billionaire Barry Diller was considering making a bid for the company. The news comes on the heels of several media reports suggesting that Warner Bros Discovery may be exploring a streaming partnership with Paramount Global.
Boeing shares fell nearly 1% after the Associated Press reported that the U.S. Justice Department is waiting for the planemaker to accept a plea deal to resolve felony fraud charges related to two deadly crashes of its 737 Max jets.
Polestar Automotive shares fell more than 1% as the electric vehicle maker reported a first-quarter operating loss.
A hopeful medicine
Meanwhile, the U.S. Food and Drug Administration (FDA) on Tuesday gave the green light to Eli Lilly’s Donanemab for patients with early Alzheimer’s, making it the next drug to be approved.second drug approved to slow the progression of this brain-destroying disease.
The approval of the brand-name drug Kisunla is in line with recommendations from the agency’s outside experts who unanimously backed the drug’s use in patients with early Alzheimer’s disease, saying the drug’s benefits outweigh its risks.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
