Stocks close mixed as Powell repeats patience; Tesla slides
Stocks lost steam Wednesday to close mixed as Federal Reserve Chair Jerome Powell reiterated the central bank's intention to wait before cutting rates.
The Dow Jones Industrial Average lost 106.59, points, 0.3%, to close at 42,982.43, while the tech-heavy Nasdaq Composite tacked on 61.02 points, or 0.3%, to settle at 19,973.55. The S&P 500 was virtually unchanged at 6,092.16, after starting the day with its sights on its February all-time high.
Oil rose after two down days in a row as it looked like Middle East oil supplies would remain intact. Brent crude added 1.3% to settle at about $68 a barrel.
Stocks advanced Tuesday after Israel and Iran agreed on a ceasefire. But with little catalyst for any sharp moves higher, the rally wavered Wednesday.
With Mideast tensions easing, investors turned to the second day of Powell's testimony to Congress. In his first appearance, he stayed on script, repeating his "wait-and-see" approach to rate cuts. Powell said the economy was stable enough now to see how tariffs affect inflation before deciding on any rate cuts.
The benchmark 10-year U.S. Treasury note was flat at 4.293%.
Corporate news
- FedEx's results topped analysts' estimates in the last three months of its fiscal year, but its current quarter outlook was weaker than expected. The stock lost 3.3%.
- Worthington Enterprises' fiscal fourth-quarter results came in better than forecasts. Shares jumped in the morning, but closed about 1.9% higher.
- Tesla sold just 13,863 vehicles in Europe last month, down 28% from a year earlier, the worst-performing major manufacturer in Europe through May, according to sales data from the local association of car manufacturers, ACEA. The stock fell nearly 4%.
- QuantumScape announced a breakthrough in its process for making solid-state batteries. Shares soared more than 30%.
- BlackBerry raised its annual sales guidance after reporting better-than-expected quarterly results. The stock closed nearly 13% higher.
Cryptocurrency
The New York Stock Exchange filed for a rule change to allow it to list the Truth Social Bitcoin and Ethereum ETF.
Bitcoin was last up 2% at $107,738.