Wall Street Closes Mixed as Apple Gains, Tesla Slumps

Wall Street’s major indexes closed mixed on Tuesday as gains in Coca-Cola (NYSE:KO) and Apple (NASDAQ:AAPL) offset losses in Tesla (NASDAQ:TSLA). Investors assessed Federal Reserve Chair Jerome Powell’s latest comments, with the Fed in no rush to cut interest rates despite persistent inflation and a strong labor market.

Powell, speaking before the Senate Banking Committee, emphasized that inflation remains above the 2% target, suggesting rate cuts are unlikely in the near term. Meanwhile, traders anticipate at least one 25-basis-point rate cut this year, with a 44% chance of another reduction, per LSEG data.

Investor attention also turned to trade policies after President Donald Trump raised steel and aluminum tariffs, hinting at further reciprocal duties on countries imposing levies on U.S. goods. Market volatility remains high amid economic uncertainties, inflation concerns, and ongoing tariff discussions.

The S&P 500 edged up 0.03% to 6,068.50, while the Dow Jones Industrial Average gained 0.28% to 44,593.65. The Nasdaq dipped 0.36% to 19,643.86. Trading volume was above average, with 15.4 billion shares exchanged.

Coca-Cola surged 4.7% after beating Q4 revenue estimates due to higher prices and strong demand. Apple rose 2.2% following reports of an AI partnership with Alibaba (NYSE:BABA) in China. Tesla plummeted 6.3% after reports that Elon Musk's consortium bid $97 billion to acquire OpenAI’s controlling nonprofit.

Other notable movers included Phillips 66 (NYSE:PSX), up 4.7% after Elliott Investment’s $2.5 billion stake revelation, and DuPont de Nemours (NYSE:DD), which soared nearly 7% after raising its 2025 profit forecast. Ecolab (NYSE:ECL) jumped 6.2% on strong earnings guidance, while Fidelity National Information Services (NASDAQ:III) tumbled over 11% due to a weak profit outlook.