Powell's Testimony Boosts Tech Stocks Amid Rate Cut Speculation

Federal Reserve Chair Jerome Powell's testimony before Congress drove the S&P 500 and Nasdaq to record highs, fueled by gains in Nvidia and other megacap stocks. Powell's comments on economic data and potential rate cuts brightened equity sentiment despite Dow Jones underperformance. Key inflation data and corporate earnings are awaited.

Federal Reserve Chair Jerome Powell's testimony before Congress on Tuesday propelled the S&P 500 and the Nasdaq to record highs, with significant contributions from Nvidia and other megacap stocks.

Powell emphasized that additional positive economic data would bolster the case for interest-rate cuts. Nvidia saw a 2.4% boost, while Applied Materials and Micron Technology also showed gains, lifting the Philadelphia SE Semiconductor index to a new high.

The S&P 500 Information Technology Index also reached an all-time high, with key players like Alphabet, Meta Platforms, and Tesla experiencing rises between 0.3% and 3.6%. Meanwhile, the Dow Jones lagged, dragged down by over 1% declines in Salesforce and Microsoft. Investors are now focused on forthcoming inflation data and the second-quarter corporate earnings season, starting with major banks' reports on Friday.

(With inputs from agencies.)