US Stocks Fluctuate Amid Tariff Concerns

US stocks exhibited mixed trading on Tuesday as investors weighed the impact of President Trump's latest tariff announcements and anticipated upcoming inflation data. Federal Reserve Chair Jerome Powell's two-day congressional appearance also influenced market sentiment.

Uncertainty Over Trump's Tariff Plan

The Dow Jones Industrial Average initially slipped into negative territory before edging up 0.1% by mid-afternoon. Conversely, the S&P 500 declined 0.1%, while the tech-heavy Nasdaq Composite lost 0.4%. Investors remained cautious ahead of Trump's midweek announcement regarding universal tariffs on imports.

Powell Reassures on Fed Independence

In his congressional testimony, Powell emphasized the importance of Fed independence, stating that the central bank would focus on its responsibilities without political interference. He reiterated that it was not the Fed's role to comment on trade policy.

Inflation Data on the Horizon

The Consumer Price Index for January and its wholesale counterpart are scheduled for release on Wednesday and Thursday, respectively, keeping inflation concerns at the forefront.

Earnings Highlights

* Coca-Cola (KO) shares rose after reporting strong quarterly earnings and revenue, driven by resilient soda demand despite price increases.
* Shopify (SHOP) stock rebounded from pre-market losses, posting downbeat first-quarter profit estimates but better-than-expected holiday sales.

Gold Surges on Safe-Haven Demand

Gold pulled back slightly after a significant run-up this year. However, analysts continue to anticipate further gains amidst tariff announcements and geopolitical tensions.

Housing Prices to Remain Elevated

Powell indicated that housing prices are likely to stay elevated, even if mortgage rates decline. He cited the persistent impact of the pandemic and the shortage of housing supply as long-term challenges.

Powell Supports Stablecoin Regulation

Powell expressed support for a regulatory framework for stablecoins, emphasizing the need for consumer protection and safe and sound development.

Fed Playbook Revised After SVB Collapse

Powell acknowledged that the Fed's playbook has been updated following the collapse of Silicon Valley Bank, highlighting the importance of managing interest-rate risk.