US markets - Dow up +56-points or +0.22% to log its fourth consecutive rise. The broader S&P500 added +0.40%, with the Materials (up +1.3%), Technology (+0.80%) and Consumer Staples (+0.80%) the leading sectors. The technology-centric NASDAQ rose +0.63% to 7,855.12 and another record closing high despite Netflix Inc sliding a further -5.2% after posting underwhelming subscriber numbers after the close of the previous session. However, Amazon.com Inc (up +1.2%) hit a another record high and Microsoft Corp (+1.0%) rallied ahead of their second quarter result on Thursday night AEST (19 July). Federal Reserve Chair Jerome Powell struck a hawkish tone in his semi-annual monetary policy report to the Senate Banking Committee, noting that economic growth in the second quarter was "considerably stronger than in the first." Mr Powell added that "The solid pace of growth so far this year is based on several factors. Robust job gains, rising after-tax incomes, and optimism among households have lifted consumer spending in recent months." On the subject of interest rates, Mr Powell observed that the "Federal Open Market Committee (FOMC) believes that - for now - the best way forward is to keep gradually raising the federal funds rate. We are aware that, on the one hand, raising interest rates too slowly may lead to high inflation or financial market excesses. On the other hand, if we raise rates too rapidly, the economy could weaken and inflation could run persistently below our objective."
