US stocks flat as Powell warns of longer inflation fight
NEW YORK, United States — Wall Street stocks ended little changed Tuesday as markets digested mixed economic data and Federal Reserve commentary suggesting interest rates would remain high for longer.
Fed Chair Jerome Powell said reining in inflation could take “longer than expected” following recent economic data that have pushed back expectations for interest rate cuts.
The comments came after US industrial production increased as expected while building permits and housing starts lagged behind estimates.
The Dow Jones Industrial Average finished up 0.2 percent at 37,798.97.
The broad-based S&P 500 fell 0.2 percent to 5,051.42, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 15,885.25.
READ: Another month of robust US job growth points to continued economic strength
Earlier, the International Monetary Fund lifted its US growth forecast for 2024 to 2.7 percent, up 0.6 percent from the January forecast as its chief economist Pierre-Olivier Gourinchas characterized the global economy as “quite resilient.”
Analysts have cited worries about the Middle East as a constraint on stocks, along with a rise in US Treasury yields amid shifting expectations for the Fed.
Among individual companies, UnitedHealth Group jumped 5.2 percent after reporting better-than-expected results despite a $872 million one-time charge connected to a “cyberattack.”
But Bank of America dropped 3.5 percent as traders focused on the drag of higher interest payments to depositors on company results.
