CNBC Daily Open: Tesla soars, S&P closes above 5,500

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

More records
The S&P 500 closed above 5,500 for the first time as Fed Chair Jerome Powell said the central bank had made progress on inflation. The S&P 500 and the tech-heavy Nasdaq Composite closed at record highs, with Tesla soaring 10% after sales fell less than expected. The Dow Jones Industrial Average added 162 points. The yield on the 10-year Treasury slipped as Powell indicated that the bank needs more time before cutting rates. U.S. oil prices dropped back from two-month highs.

Tesla soars
Tesla's shares surged 10.2% after the EV maker beat second-quarter production and delivery expectations. However, total deliveries still fell 4.8% year-over-year, though they rose 14.8% from the first quarter. The decline comes as Tesla faces increased competition, particularly in China, and an aging vehicle lineup. To stimulate sales, Tesla has offered various discounts and incentives, such as zero-interest loans for Model 3 and Model Y purchases in China. 

Inflation progress 
Powell said the central bank had made "quite a bit of progress" on inflation over the past year but said he wants to see more before being confident enough to start cutting interest rates. "The last [inflation] reading and the one before it to a lesser extent, suggest that we are getting back on the disinflationary path," Powell said at a central banking forum in Sintra, Portugal. "We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy."

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