FX.co ★ Nasdaq, S&P 500 Reach New Record Highs But Dow Edges Lower

After closing the previous session on opposite sides of the unchanged line, the major U.S. stock indexes are exhibiting another mixed performance during Tuesday's trading.

The Nasdaq and S&P 500 have both ascended to new record intraday highs, while the Dow is extending the modest loss observed on Monday.

As of now, the Nasdaq has increased by 59.22 points, or 0.3%, reaching 18,462.96, and the S&P 500 has risen by 10.90 points, or 0.2%, standing at 5,583.75. However, the Dow has decreased by 92.72 points, or 0.2%, to 39,252.07.

The mixed activity on Wall Street can be attributed to traders digesting Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee.

Powell indicated that further positive economic data would bolster the central bank's confidence in inflation moving sustainably towards its 2% target, potentially leading to an interest rate cut.

"The Committee has stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent," Powell commented in prepared remarks.

"Incoming data for the first quarter of this year did not support such greater confidence," he continued. "The most recent inflation readings, however, have shown some modest further progress, and more good data would strengthen our confidence that inflation is moving sustainably toward 2 percent."

Powell's statements align with a report from the Commerce Department late last month, revealing that the annual rate of growth for core consumer prices, excluding food and energy, decelerated to 2.6% in May from 2.8% in April.

The Labor Department is set to release its June consumer price inflation report on Thursday.

Economists project that the annual rate of consumer price growth will slow to 3.1% in June from 3.3% in May, while the annual rate for core consumer price growth is expected to hold steady at 3.4%.

Powell also cautioned about the risk of maintaining elevated interest rates for too long, which could threaten economic growth.

"In light of the progress made in lowering inflation and cooling the labor market over the past two years, elevated inflation is not the only risk we face," Powell stated. "Reducing policy restraint too late or too little could unduly weaken economic activity and employment."

Most major sectors are showing only modest movements today, leading to the overall lackluster performance of the broader markets.

In international markets, stock indexes across the Asia-Pacific region generally moved higher on Tuesday. Japan's Nikkei 225 Index climbed by 2.0%, while China's Shanghai Composite Index increased by 1.3%.

Conversely, major European markets have declined. The French CAC 40 Index fell by 1.4%, the German DAX Index decreased by 1.2%, and the U.K.'s FTSE 100 Index dropped by 0.5%.

In the bond market, treasuries have lost ground following recent gains, with the yield on the benchmark ten-year note, which moves inversely to its price, increasing by 4.6 basis points to 4.314%.