Wall Street Mixed As Fed Tries To Reassure Markets

US monetary policy will offer "powerful support" to the economy "until the recovery is complete," Powell told a congressional hearing in remarks that portrayed a recent jump in inflation as temporary and focused on the need for continued job growth.

Powell's comments followed data this week showing US producer prices increased more than expected in June and US consumer prices rose by the most in 13 years.

The Dow Jones Industrial Average rose 0.13 percent to end at 34,933, while the S&P 500 gained 0.12 percent to 4,374. The Nasdaq dropped 0.22 percent to 14,645.

Investors in recent weeks have focused on inflation, with many fearing a possible hawkish shift by the Federal Reserve, as well as a spike in coronavirus infections that could knock US equities off record highs.

The S&P 500 is up about 16 percent so far this year, leading many investors to worry that the stock market rally may run out of steam, and they are looking to earnings to potentially provide more fuel.

"Everyone knows earnings are going to be very strong. The question is how the market reacts to those earnings, and what are the outlooks given by management," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

Apple jumped 2.4 percent to a record high after Bloomberg reported that the company wants suppliers to increase production of its upcoming iPhone by about 20 percent.

Bank of America dropped 2.5 percent after the lender posted its quarterly results and detailed its sensitivity to low interest rates. Wells Fargo rose 4 percent after it swung to a profit in the second quarter, smashing Wall Street expectations. (Reuters)