The stock market continued its steady climb this week as investors balanced concerns over trade policies with signals from the Federal Reserve. On February 10, the S&P 500 rose 0.7%, pushing markets closer to record highs despite lingering uncertainty over additional tariffs on imported metals. While trade tensions remain a key focus, strong corporate earnings and a resilient economy have kept the market on an upward trajectory.
Federal Reserve Chair Jerome Powell’s testimony before Congress has also been a central topic for investors. On Tuesday, Powell addressed the Senate Banking Committee, and he is scheduled to speak before the House Financial Services Committee on Wednesday. His remarks have provided insight into the Fed’s stance on inflation, interest rates, and economic growth.
In his prepared statement, Powell reaffirmed that the Fed is prepared to keep interest rates unchanged for now. With inflation still elevated and the labor market remaining strong, the central bank sees no urgency to cut rates. However, Powell acknowledged that the Fed remains data-driven and will adjust its policy as needed.
Despite Powell’s cautious tone on rate cuts, the market responded with measured optimism. On February 11, the S&P 500 edged up just 0.03%, closing at 6,068.50, while the Dow Jones Industrial Average gained 0.3%. The Dow hovered near 44,500, reflecting confidence in the economy’s ability to sustain growth even as monetary policy remains steady.
Investors are keeping a close watch on Powell’s upcoming testimony, as well as corporate earnings reports, to gauge the broader outlook for markets. For now, the resilience of equities suggests that traders remain confident in the economy’s strength, even in the face of geopolitical and policy uncertainties.
