The Nasdaq Composite marched to record highs Tuesday as Federal Reserve Chairman Jerome Powell reiterated his belief that the recent surge in inflation was temporary.
The tech-heavy Nasdaq rose 111.79 points, or 0.79%, while the Dow Jones Industrial Average and the S&P 500 climbed 0.2% and 0.51%, respectively.
|I:DJI||DOW JONES AVERAGES||29450.95||-475.99||-1.59%|
|I:COMP||NASDAQ COMPOSITE INDEX||10731.835762||-341.47||-3.08%|
Powell, speaking before the House Select Subcommittee on the Coronavirus Crisis, said he was confident that inflation was "transitory," but that it was difficult to know when it would cool.
The testimony comes a day after the major averages posted their biggest gains in at least a month, buoyed by comments from New York Fed President John Williams, who said the U.S. economy isn’t strong enough for the central bank to shift policy.
The benchmark 10-year yield declined 1 basis point to 1.47% and remained near its lowest level since the beginning of March.
In stocks, mega-cap technology companies, including Apple Inc. and Amazon Inc., were firm as bond yields remained in check.
Microsoft Corp. topped a $2 trillion market capitalization for the first time. Shares needed to close above $265.55 apiece to hold the level.
Elsewhere, GameStop Corp. shares surged after the company said it raised $1.13 billion through the sale of 5 million shares. The company plans to use the proceeds for general purposes and to invest in growth initiatives.
Crypto-linked companies, like Riot Blockchain Inc. and MicroStrategy Inc., were reversed early losses as bitcoin slumped below $30,000 before turning higher.
In earnings, Plug Power Inc. reported a wider-than-expected quarterly loss as revenue topped estimates. The company said it expects hydrogen prices to decline meaningfully during the second half of the year.
|PLUG||PLUG POWER INC.||21.09||-0.88||-4.01%|
In commodities, West Texas Intermediate crude oil lost 60 cents to $73.06 a barrel and gold declined $5.50 to $1,776.30 an ounce.
Overseas trading was choppy.
In Europe, Britain’s FTSE 100 advanced 0.39%, while France’s CAC 40 and Germany’s DAX 30 ticked up 0.14% and 0.21%, respectively.
Japan’s Nikkei 225 outperformed in Asia, climbing 3.12%, as China’s Shanghai Composite rose 0.8% and Hong Kong’s Hang Seng index slid 0.63%.