On Tuesday, US stocks rallied following Federal Reserve Chair Jerome Powell's positive remarks on the "disinflationary path" of recent economic data. The S&P 500 closed at a record high of 5,509, the Nasdaq Composite also notched a record close at 18,028, and the Dow Jones Industrial Average rose about 0.4%. Powell expressed encouragement about cooler inflation but emphasized the need for more evidence before considering interest rate cuts. The 10-year Treasury yield nudged lower to 4.43% after a significant gain the previous day. Tesla's stock surged about 10% after the company delivered more vehicles than expected in the second quarter. Additionally, the Job Openings and Labor Turnover (JOLTS) survey revealed an unexpected increase in job openings from April to May, indicating the labor market's resilience. Despite a slow start, major US equities indexes rallied in the afternoon, with the S&P 500 closing above the 5,500 milestone for the first time in its history and the Nasdaq reaching its second consecutive record close. Tesla's strong performance continued, with its shares driving 10.2% higher, and the company is set to release its next earnings report on July 23. Paramount Global's shares also jumped amid reports of a potential acquisition by billionaire Barry Diller's firm IAC. The market's focus on inflation, interest rates, job market resilience, and corporate performance, particularly in the tech and automotive sectors, contributed to the day's market movements.
