Wall Street Mixed: Coca-Cola Rises, Tesla Falls Amid Powell’s Comments
Wall Street ended with mixed results on Tuesday as Coca-Cola and Apple saw gains, while Tesla dropped sharply. According to Reuters, investors were reacting to Federal Reserve Chair Jerome Powell’s comments that the U.S. economy remains strong, with low unemployment and inflation still above the Fed’s 2% target. This means the Fed is in no hurry to cut interest rates again.
Coca-Cola jumped 4.7% after reporting better-than-expected quarterly revenue, thanks to higher prices and strong demand for its drinks. On the other hand, Tesla fell 6.3% after reports that Elon Musk’s group offered $97 billion to buy the nonprofit behind AI startup OpenAI.
Investors were also watching for updates on tariffs after President Donald Trump raised taxes on steel and aluminum imports and promised more announcements on trade policies. Terry Sandven, a strategist at U.S. Bank Wealth Management, told Reuters that uncertainty around tariffs, inflation, and global tensions is causing market volatility.
Apple shares rose 2.2% after news that it’s partnering with Alibaba to bring AI features to iPhones in China. Meanwhile, Phillips 66 gained 4.7% after an activist investor revealed a $2.5 billion stake in the company.
The S&P 500 ended slightly higher, while the Nasdaq fell and the Dow Jones rose. Traders are still expecting at least one interest rate cut this year, with a 44% chance of a second cut, according to LSEG data.
. The mixed results show how Wall Street is balancing strong company performances with concerns about inflation, interest rates, and global trade policies.
This report is based on information from Reuters, a trusted news source