by Noel Randewich and Lisa Pauline Mattackal

(Reuters) – The New York Stock Exchange ended mixed on Tuesday after Federal Reserve Chairman Jerome Powell said the case for lower interest rates was becoming more compelling.

The Dow Jones index fell 0.1%, or 52.82 points, to 39,291.97 points.

The broader S&P 500 gained 4.13 points, or 0.1 percent, to 5,576.98.

The Nasdaq Composite rose 25,553 points, or 0.1%, to 18,429.291 points.

Jerome Powell suggested at a hearing before the US Senate Banking Committee that the case for cutting interest rates was growing stronger, but did not provide a specific timetable.

“We are well aware that we are now facing double-sided risks and that we can no longer focus solely on inflation, which nevertheless remains above the central bank’s 2% target,” he said, adding that the labor market appeared to “have returned to equilibrium.”

Markets are pricing in nearly a 72% chance of a 25 basis point cut at the Fed’s September meeting, up from less than 50% a month ago, according to the CME’s FedWatch barometer.

“The U.S. economy, and the U.S. labor market, have proven surprisingly resilient in 2024 and our base case is that a recession is not the most likely outcome, but rather we should continue to expect moderate growth this year and into next year,” said Bill Northey, investment manager at U.S. Bank Wealth Management.

Investors are now awaiting the publication of consumer and producer price figures for June at the end of the week.

In terms of values, Nvidia rose, offsetting the decline of other players in the semiconductor sector.

Tesla advanced while Microsoft retreated.

JPMorgan, Wells Fargo, and Citi advanced ahead of their second-quarter results on Friday.

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(With contributions from Ankika Biswas; by Camille Raynaud)

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