Merchants work on the ground of the New York Inventory alternate throughout morning buying and selling on Might 17, 2024.Michael M. Santiago | Getty ImagesThe S&P 500 rose on Tuesday to a contemporary document as buyers digested key testimony from Federal Reserve Chair Jerome Powell.The broad market index climbed 0.2% to an all-time excessive. The Nasdaq Composite additionally reached a document and was final up 0.2%. The Dow Jones Industrial Common lagged, shedding 50 factors, or 0.1%. Powell stated in ready remarks that retaining rates of interest elevated for too lengthy may danger additional financial development, seemingly hinting that the central financial institution is contemplating taking a much less restrictive stance.”Lowering coverage restraint too late or too little may unduly weaken financial exercise and employment,” Powell stated as a part of his semiannual replace on financial coverage. “Extra good information would strengthen our confidence that inflation is shifting sustainably towards 2 %.”Powell will proceed testimony this week earlier than Congress on Wednesday earlier than the Home Monetary Companies Committee. His remarks come forward of key inflation information is due out later this week with the June shopper worth index on Thursday, in addition to the producer worth index on Friday.”The labor market has been weakening and Powell is beginning to concentrate,” stated David Russell, world head of market technique at TradeStation. “He acknowledges that coverage is restrictive and progress has been made on inflation. This probably lays the groundwork for a ‘Powell put’ later within the 12 months.”Nvidia shares had been up 4% after KeyBanc hiked its worth goal on the chipmaker to $180, implying upside of 40% from Monday’s shut. The VanEck Semiconductor ETF (SMH) gained 1%. Tech companies Apple and Google-parent Alphabet traded marginally larger.A scarcity of market breadth stored the S&P 500’s features in examine, nevertheless. Shares of McDonald’s and Microsoft slipped 1% and a couple of% every and held again the Dow. “The S&P 500 has been pushed by a slim vary of tech leaders leveraged to AI tailwinds, whereas the remainder of the market has considerably lagged,” Pernas Analysis co-founder Deiya Pernas stated of the S&P 500’s contemporary document excessive. “Given the exuberance round AI, we anticipate this development to proceed within the close to to intermediate time period.”— CNBC’s Jeff Cox contributed to this report.