The S&P 500 posted a slight gain on Tuesday as investors digested cautious comments from Federal Reserve Chairman Jerome Powell on interest rates. Concerns persisted over the direction of the economy amid U.S. tariffs and a possible escalation of the global trade war.

The S&P 500 rose 0.03% to close at 6,068.50, while the Nasdaq Composite fell 0.36% to close at 19,643.86. The Dow Jones Industrial Average rose 123.24 points, or 0.28%, to 44,593.65.

Apple rose 2.2% after The Information reported that the company is partnering with Alibaba to develop AI features for iPhone users in China, curbing market losses.

Powell earlier testified before the Senate Banking Committee and signaled that the Fed does not need to move quickly to ease monetary policy.

"With our policy now much looser than it has been and the economy remaining strong, we are in no hurry to adjust our policy," Powell said in his first of two appearances this week on Capitol Hill. The central bank chief called the economy "overall strong" with a "solid" labor market, and said inflation was easing but still above the Fed's 2% target.

Powell's testimony — which will be followed by an appearance before the House Financial Services Committee on Wednesday — comes at a volatile time in Washington with President Donald Trump backing tariffs on U.S. trading partners and with mixed messages from the administration about his approach to the Fed.

Trump on Monday signed new tariffs on all steel and aluminum imports into the U.S., and the European Union responded by saying it would retaliate with its own levies if the U.S. imposes tariffs on products from the bloc.

Investors are looking ahead to fresh inflation data in the form of the latest consumer price index report due on Wednesday, while the producer price index is due on Thursday.

Source: CNBC