The S&P 500 and Nasdaq reached new record highs on Tuesday, with each marking their sixth consecutive day of gains. Federal Reserve Chair Jerome Powell's testimony to Congress bolstered hopes of rate cuts as signs of a US economic slowdown emerge. The S&P 500 closed just above flatline, hitting its 36th record close of the year, while the Nasdaq Composite closed up 0.1%. The Dow Jones Industrial Average closed slightly down. Traders are confident in their forecast of two rate cuts this year, with Oxford Economics chief US economist Ryan Sweet predicting a cut in September. Powell emphasized the need for more "good data" to confirm inflation moving towards the Fed's 2% target. However, market caution is increasing, with some predicting a 10% correction. Additionally, AI stocks are driving market returns, emphasizing the need to broaden exposure. Earnings season is approaching, with concerns for market breadth, while stocks like BP, Baidu, and Novo Nordisk are trending. Tesla's stock is on track for its tenth consecutive day of gains, with anticipation around quarterly results and robotaxis. Treasury yields rose as Powell spoke, with expectations of two interest rate cuts this year. Powell reiterated the need for more data before rate decisions. Apple's market cap is now $3.5 trillion, with excitement around AI and potential iPhone sales growth in China. Analysts caution on Apple's current valuation.