Dow (DJIA) Holds Momentum, Nasdaq Hits New Peak, While Powell Stays Cautious
FED's Powell testimony steadied investor sentiment on Tuesday, leaving Dow Jones and Nasdaq little changed, while offering reassurance...
Quick overview
- Federal Reserve Chair Jerome Powell's testimony reassured investors about the strength of the U.S. labor market and the economic outlook.
- The Nasdaq Composite reached a new intraday high before closing slightly lower, indicating ongoing interest in tech stocks.
- The Dow Jones maintained its position above key trend indicators, suggesting potential for further gains.
- Overall market sentiment was mixed, with small-cap stocks underperforming and defensive positioning evident in various sectors.
FED’s Powell testimony steadied investor sentiment on Tuesday, leaving Dow Jones and Nasdaq little changed, while offering reassurance on labor market strength and rate policy outlook.
Powell Testifies Before Congress, Reaffirms Economic Strength
Federal Reserve Chair Jerome Powell addressed the U.S. House of Representatives in a closely watched testimony, emphasizing that the U.S. labor market remains solid and that the economy is not currently in a recession. He is set to speak to the Senate tomorrow.
In his remarks, Powell noted that the Fed sees no clear signs of labor market weakness for now, which allows it to maintain its cautious stance on interest rates. However, he added that should signs of labor softening emerge, it would influence future policy decisions. He further acknowledged that if inflation proves lower than expected, an earlier rate cut would be on the table — though persistent inflation or labor strength would delay such moves.
Market Performance: Nasdaq Pops Then Pauses
The Nasdaq Composite briefly reached a new all-time intraday high of 22,322 points during the session, lifted by tech sector momentum, before pulling back to close slightly lower. Despite the reversal, the index’s strength highlighted ongoing investor interest in growth names.
Nasdaq Chart Weekly – Off to New Highs 
In contrast, the Dow Jones Industrial Average built on Monday’s strength by holding above its 20-day simple moving average (SMA) — a key short-term trend indicator. This technical move suggests the Dow may continue climbing and could be on the verge of setting fresh record highs in the coming days.
Dow Jones Chart Weekly – The 20 SMA Turns Into Support
Meanwhile, broader market sentiment was more subdued. The Russell 2000 faced pressure from small-cap weakness, and Canadian equities mirrored a cautious global tone, with defensive positioning evident in most sectors.
Key Market Closures – North American Indices:
- S&P 500 ended nearly flat at 6,092.16, down 0.02 points or -0.00033%.
- Nasdaq Composite gained 61.02 points or +0.31%, closing at 19,973.55.
- Russell 2000 Index dropped 25.03 points or -1.16%, ending at 2,136.18.
- Dow Jones Industrial Average fell 106.59 points or -0.25%, finishing at 42,982.43.
- Toronto S&P/TSX Composite Index declined 152.30 points or -0.57%, to settle at 26,566.32.
Conclusion: Chair Powell’s remarks provided markets with a sense of policy stability and reinforced confidence in the U.S. economic backdrop. While tech stocks continue to lead on optimism around innovation and earnings growth, the broader market remains mixed, awaiting clearer signs on inflation, employment, and the Fed’s next move.
Dow Jones Live Chart
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