The S&P 500 and Dow registered subtle profits at the close of US trading Wednesday as Federal Reserve Chair Jerome Powell reiterated that stimulus will continue.

Following the central bank chief’s statement before the House Financial Services Committee, which stated that  “monetary policy will continue to deliver powerful support to the economy until the recovery is complete,” the Nasdaq closed down lower.

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The Dow Jones Industrial Average was up 0.1% at 34,933.23 at the closing, while the broad-based S&P 500 was up 0.1% at 4,374.30.

The Nasdaq Composite Index, which is dominated by technology, fell 0.2% to 14,644.95.

However, signals of growing inflation, according to Tom Cahill of Ventura Wealth Management, may jeopardise market momentum and weaken the Fed’s credibility.

According to data released by the Labor Department on Wednesday, the producer price index increased by a record 7.3% in the 12 months ending in June, setting a new high.

According to the Federal Reserve’s Beige Book study of economic conditions, the US economy has been growing “moderately to robustly” in recent weeks, but prices have been rising.

“Investors are wondering at what point the Fed is going to admit that they may have underestimated how rapid inflation is,” Cahill said.

Also Read | US records biggest annual inflation jump since August 2008

Delta Air Lines ended 1.6% lower among big corporations that posted profits after reporting its first quarterly profit since the pandemic began.

After posting excellent earnings, Bank of America fell 2.5% and Citigroup lost 0.3%.  Wells Fargo increased by 4% on a similar upbeat earnings report.