STORY: U.S. stocks took a breather on Wednesday, with the Dow dipping a quarter-percent, the S&P 500 ending flat and the Nasdaq ticking up about a third of a percent.
Stocks had rallied for two days on the tenuous ceasefire between Israel and Iran.
Investors also parsed two days of congressional testimony from Fed Chair Jerome Powell, which concluded on Wednesday.
Speaking to the Senate Banking Committee, Powell reiterated that the Fed would wait to cut interest rates until the inflationary effects of President Donald Trump's tariffs are better known.
That could take months, says Brad Bernstein, managing director at UBS Private Wealth Management.
“Are tariffs going to be inflationary or not, is a great question. And that is what the Fed is waiting on. They need a couple more months of data before they feel comfortable starting to cut interest rates, which is why markets and UBS (bank) believe they'll start cutting in September. What we think and what several of the Fed members have come out and said, there may be a one-time price reset in the markets, but it won't be long-term inflationary just like we saw in Trump One, in his first term.”
Stocks on the move Wednesday included Nvidia, which touched a record high, closing up more than 4%. The AI darling's market value is now $3.75 trillion, making it the world's most valuable company.
Tesla shares fell nearly 4% as the EV maker's European sales slumped for a fifth straight month.
And U.S.-listed shares of BlackBerry jumped 12.5% on the heels of its revenue forecast hike. Once known for its smart phones, Blackberry now sees growing demand for its cybersecurity services amid growing online crimes.
