The S&P 500 closed slightly higher after Federal Reserve Chairman Jerome Powell said the central bank will maintain its easy monetary policies.
The Dow Jones Industrials gathered 44.44 points to end the session at 34,933.23
The S&P 500 gained 5.09 points to 4,374.30.
The NASDAQ dumped 32.7 points to 14,644.95.
The S&P 500 is up more than 16% in 2021 and more than 37% in the past 12 months, signaling good news might be priced into shares. S&P 500 profit growth is expected to total 64% year-over-year for the quarter.
Apple shares gained 2.4% after the company reportedly asked suppliers to ramp up production of its next-generation iPhones by 20%. JPMorgan also added the tech giant to its focus list and raised its price target on the stock to imply 20% potential upside from Tuesday’s close.
Second-quarter earnings reports from big banks and other major companies continued on Wednesday.
Bank of America shares fell after it reported second-quarter revenue of $21.6 billion, just under the $21.8 billion estimate from Refinitiv. Low interest rates knocked net interest income by 6%.
Meanwhile, American Airlines shares jumped after the carrier forecast better revenue and a narrower loss than its previous estimate for the second quarter. The company is set to report quarterly fiscal results on July 22.
Powell said in his semi-annual testimony before Congress Wednesday that the central bank can wait before it starts to ease its bond purchases despite surging inflation readings. Powell said he still expects inflation to moderate.
The central bank chief is speaking before the House Committee on Financial Services. He is scheduled to testify before the Senate on Thursday.
Prices for 10-Year Treasurys gained, lowering yields to Tuesday’s 1.35%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.51 to $72.74 U.S. a barrel.
Gold prices jumped $18.60 to $1,822.30 U.S. an ounce.