Daily Summary: Powell's Testimony Keeps Markets in Check

US markets showed mixed performance as Powell testified, with Dow Jones Industrial Average flat, S&P 500 0.16% in red and Nasdaq 100 down 0.3%. Treasury yields rose across the curve, with 10-year yield advancing four basis points to 4.54% as Fed Chair signaled patience on rate cuts.

Intel shares jumped 8% on Vice President JD Vance's comments about domestic chip manufacturing at the AI Action Summit in Paris. Trading volume surged with over 400,000 calls, led by Friday-expiring $21 calls, marking its largest two-day gain since March 2020.

Apple stock climbed 3% after partnering with Alibaba to develop AI features for iPhones in China. The tech giant reported its best quarter ever with revenue of $124.3 billion, up 4% year over year, and projects low to mid-single digit growth ahead.

Boeing delivered more jets than Airbus for the first time in almost two years, while Coca-Cola beat profit expectations on higher pricing. DuPont earnings jumped on electronics market growth, and Elliott Investment Management disclosed a $2.5 billion stake in Phillips 66.

Fluence Energy shares plummeted almost 50% after the battery maker slashed sales guidance, citing contract delays in Australia. Fidelity National fell 18% on disappointing banking solutions revenue and guidance that missed expectations.

Snap shares declined 3.4% following Guggenheim's downgrade to neutral from buy, while trading volumes in Magnificent Seven tech stocks continued their two-year decline despite the group hitting fresh market cap highs.

President Trump ordered 25% tariffs on steel and aluminum imports, including those from Canada and Mexico. The European Union vowed to impose countermeasures, escalating potential transatlantic trade tensions.

Investor exposure to US stocks weakened as bullish bets halved and gross positioning decreased, according to Citigroup strategists. European markets appear to be benefiting from this shift in positioning flows.

Federal Reserve Chair Powell clarified the central bank's role in Treasury payments system security following Musk controversy, confirming system safety and stating no direct access attempts by Musk to Fed systems.

Treasury Secretary Scott Bessent announced for Ukraine visit this week to meet President Zelenskiy, becoming first Trump cabinet member to visit the country. The trip focuses on securing critical minerals access in exchange for defense aid, with Ukraine's reserves of uranium, titanium, lithium, and graphite estimated at trillions of dollars.

Gold hovers around $2,900 today, while silver slips 0.35% to $31.91. Brent and WTI continue their upward path, both up 1% today, reaching $76.94 and $73.23, respectively.