The stock market showed mixed results on Tuesday as investors closely watched Federal Reserve Chair Jerome Powell’s testimony in Congress and awaited key inflation data. The Dow Jones Industrial Average rose slightly, while the S&P 500 closed just above the flatline and the Nasdaq Composite pulled back. In his testimony, Powell emphasized the importance of the Federal Reserve’s independence, stating, “We’ll make better policy and keep inflation lower if we just focus on doing our job and stay out of politics.” He also highlighted the need for the central bank to remain accountable and transparent in its decision-making processes.
Investors are eagerly anticipating the release of the January Consumer Price Index (CPI) report on Wednesday morning, which will provide the latest test of inflationary pressures at the start of the year. Headline inflation for January is expected to hold steady at 2.9% from December, with consumer prices expected to have risen by 0.3% over the prior month. Core inflation, which excludes volatile food and gas prices, is expected to show a year-over-year rise of 3.1%, slightly down from 3.2% in December.
Super Micro Computer stock experienced significant volatility on Tuesday, initially falling by as much as 19% but later reversing direction to close up nearly 3% in late trading.
Market anticipates key inflation data
The company announced its aim to comply with Nasdaq’s February 25 deadline to avoid delisting by filing its delayed reports.
Intel stock jumped 6.5% after U.S. Vice President JD Vance stated that the Trump administration would ensure AI systems are built in the U.S. using American-made semiconductors. This statement is part of a broader strategy led by Intel’s CEO to regain technological leadership in semiconductor manufacturing. Gold futures pulled back slightly on Tuesday after a significant rise, trading just below an all-time high.
The precious metal continues to serve as a portfolio hedge amid uncertainties around trade policies and geopolitical tensions. Powell also commented on the housing market, indicating that housing prices are likely to remain elevated even if mortgage rates decline, attributing this to the lingering effects of the pandemic on housing markets across the country. As investors navigate these developments, the upcoming CPI report and its implications on Federal Reserve policies will be closely scrutinized, shaping market sentiment and future financial decisions.
