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Nvidia ( NVDA ) gains; other heavyweights mixed

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Fed's Powell wants more "good" economic data

(Updates with market close)

By Noel Randewich and Lisa Pauline Mattackal

July 9 (Reuters) - Wall Street ended mixed on Tuesday

after U.S. Federal Reserve Chair Jerome Powell told lawmakers

that more "good" economic data would strengthen the case for

rate cuts.

AI chipmaker Nvidia ( NVDA ) climbed, offsetting declines in

other chip stocks.

Tesla gained, while Microsoft ( MSFT ) lost ground.

In testimony before Congress, Powell said that while

inflation "remains above" the 2% soft-landing target, it has

been improving in recent months and "more good data would

strengthen" the case for interest-rate cuts.

However, the central bank chief insisted he was not "sending

any signals about the timing of any future actions."

Markets have stuck to pricing in 50 basis points of easing

for the year, seeing a nearly 72% chance for a 25 bps cut by the

Fed's September meeting, according to CME's FedWatch. Those bets

were at under 50% a month ago.

"The U.S. economy, and currently the U.S. labor market, have

been surprisingly resilient through the course of 2024 and our

base case is that a recession is not the highest probability

outcome, but rather we should continue to expect moderate growth

through the balance of this year and into next," said Bill

Northey, senior investment director at U.S. Bank Wealth

Management.

Crucial inflation data is also due this week, including

Thursday's consumer price index and the producer price index

reading on Friday.

Shares of JPMorgan ( JPM ), Wells Fargo ( WFC ) and Citi

all gained. The three banks will release quarterly results

on Friday, marking the start of second-quarter earnings season.

Reuters reported that the Fed was considering a rule change

that could save big banks billions of dollars in capital.

Analysts on average see S&P 500 companies increasing their

aggregate earnings per share by 10.1% in the second quarter, up

from an 8.2% increase in the first quarter, according to LSEG

I/B/E/S data.

JPMorgan ( JPM ) and Wells Fargo ( WFC ) were up about

2%, while Citi also gained. All three banks will release

quarterly results on Friday, marking the start of second-quarter

earnings season.

According to preliminary data, the S&P 500

gained 4.56 points, or 0.08%, to end at 5,577.41 points,

while the Nasdaq Composite gained 25.55 points, or

0.14%, to 18,429.29. The Dow Jones Industrial Average

fell 51.83 points, or 0.13%, to 39,292.96.

Tempus AI ( TEM ) rose after JPMorgan ( JPM ), Morgan Stanley and

other brokerages initiated coverage of the stock with bullish

ratings. The genetics testing firm, which receives "immaterial"

revenue from its AI business, is down around 8% from the $37

price set in its June IPO.