S&P 500, Nasdaq end at fresh records after Fed chair’s comments

NEW YORK, NEW YORK – JUNE 18: Traders work on the floor of the New York Stock Exchange (NYSE) on June 18, 2024 in New York City. After the S&P 500 and Nasdaq closed at record highs Monday, U.S. stocks were up in early trading Tuesday. Spencer Platt/Getty Images/AFP (Photo by SPENCER PLATT / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

New York, United States — Wall Street stocks jumped Tuesday, lifting major indices to fresh records, following comments from Federal Reserve Chair Jerome Powell that boosted the odds for interest rate cuts.

The broad-based S&P 500 gained 0.6 percent to 5,509.01, a fresh record.

The tech-rich Nasdaq Composite Index gained 0.8 percent to 18,028.76, also a record, while the Dow Jones Industrial Average advanced 0.4 percent to 39,331.85.

READ: US Fed has made ‘quite a bit of progress’ on inflation: Powell

Powell’s upbeat comments came at a panel discussion with other central bankers in Portugal.

“We’ve made quite a bit of progress in bringing inflation back down to our target, while the labor market has remained strong and growth has continued,” Powell said. “We want that process to continue.”

Powell “said just enough to get the traders excited as he always does,” said Steve Sosnick at Interactive Brokers. “Powell most always tends toward the dovish side or typically says something neutral, but traders take the part that they like to hear.”

READ: US stocks back at records while European bourses retreat

Among individual companies, Tesla shot up more than 10 percent after reporting lower auto sales in the second quarter that still topped expectations.

The figures fueled talk that Elon Musk’s automaker is poised to rebound after a tough period for electric vehicles.

Markets will close early on Wednesday for the Independence Day holiday before reopening on Friday, when the market will digest US jobs data for June.