U.S. stocks began the day weaker as investors awaited testimony from Federal Reserve Chairman Jerome Powell before the Senate Banking Committtee and what comes next in President Donald Trump’s tariff plans.
In his first Congressional appearance since President Donald Trump’s inauguration, Powell is expected to address questions about the role tariffs may have on inflation and the economy, his economic outlook, interest rates, and the central bank’s independence from the executive branch. Most economists have pared back expectations for rate cuts this year while a handful have said they don’t expect any. Powell’s testimony began at 10 a.m. ET, and he has said there’s no rush to cut rates.
On Wednesday, Powell continues to speak, testifying before the House Financial Services Committee at 10 a.m. ET.
Shares of steel and aluminum prducers like Cleveland-Cliffs, United States Steel, Nucor and Alcoa extended Monday’s gains made after Trump slapped a 25% tariff on the two metals. Overnight, European leaders said they would prefer to negotiate a deal on steel and aluminum but wouldn’t hesitate to enact their own levies amid an impasse.
Around 10 a.m. ET, the broad S&P 500 index was down 0.22%, or 13.56 points, to 6,052.88; the blue-chip Dow shed 0.22%, or 97.66 points, to 44,372.75; and the tech-laden Nasdaq fell 0.22%, or 54.08 points, to 19,660.19. The benchmark 10-year yield rose to 4.531%.
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Inflation data
On Wednesday morning, key January consumer inflation data are due. Economists, on average, expect overall inflation to be up 2.8% from a year earlier, slightly lower than December’s 2.9%.
Producer price index is due on Thursday morning. Producer prices measure what businesses pay to each other, also called wholesale prices. Inflation trends can sometimes show up first in producer prices before trickling down to consumers. Economists expect a monthly gain of 0.3% in the PPI, slightly ahead of the 0.2% spike for December.
Corporate news
So far earnings season has been positive, data show. Among the more than half of the S&P 500 companies that have reported quarterly results, 76.6% have beaten analysts’ earnings expectations, according to LSEG data.
More earnings and other corporate news on Tuesday included:
- Coca-Cola stock added 4% after the beverage maker beat revenue estimates during the last three months of the year, helped by higher prices and resilient demand for its sodas and juices.
- Lattice Semiconductor’s revenues in the last few months of the year topped analysts’ expectations. Shares of the semiconductor maker jumped 13.27%.
- DuPont shares rose 4.64% after the industrial materials maker raised its 2025 profit forecast on strong demand for electronics.
- Phillips 66 shares gained 4.11% after Reuters said activist Elliott Investment Management has a more than $2.5 billion stake in the oil refiner.
- Vertex Pharmaceuticals said its earning per share in the final months of last year missed analysts’ forecasts but its sales topped. The biotechnology company’s shares slipped 2.12%.
- Astera Labs beat analysts’ expectations in the last few months of the year and its outlook for the first three months was above forecasts. The chipmaker’s stock was down about 3%.
- An Elon Musk-led group made an unsolictied $97.4 billion bid for OpenAI. OpenAI says it’s not for sale.
![NEW YORK, NEW YORK - FEBRUARY 03: The New York Stock Exchange is seen during morning trading on February 03, 2025 in New York City. All three major indexes opened on a downward trajectory to start the month of February after U.S. President Donald Trump signed an executive order enacting 25% tariffs on imports from Canada and Mexico and also placing a 10% levy on imports from China. (Photo by Michael M. Santiago/Getty Images)](https://www.usatoday.com/gcdn/authoring/authoring-images/2025/02/11/USAT/78407819007-2197445085.jpg?width=660&height=441&fit=crop&format=pjpg&auto=webp)
Bitcoin
The Securities and Exchange Commission asked a court to pause its case against crypto exchange Binance, underscoring how Trump’s administration may be crypto friendly.
The prior administration’s SEC had alleged Binance operated unregistered exchanges, misrepresented trading controls, and commingled investors’ assets with company funds. Binance has always said the case was without merit.
Bitcoin was last down 0.45% at $97,032.85.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.