Stocks turned lower on Tuesday as Wall Street heard from Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average was down 116 points, or 0.3%. The S&P 500 was down 0.6%. The Nasdaq Composite was down 0.9%. All three finished at record closing highs on Monday, so any move higher would be a fresh milestone.
Powell discussed the economic outlook and inflation at an event hosted by the Greater Providence Chamber of Commerce
“Near-term risks to inflation are tilted to the upside and risks to employment to the downside—a challenging situation,” Powell said. “Two-sided risks mean that there is no risk-free path.”
Markets already heard from Powell last week, so other central bank officials may move markets more this week as traders evaluate where each voting member stands.
“Powell in his speech today is not saying anything new,” writes Peter Boockvar, an independent economist and market strategist.
The yield on the 2-year Treasury note was down to 3.6%. The 10-year yield was down to 4.14%. Traders see a 77.2% chance of two additional quarter-point rate cuts through the end of the year, with odds of just one additional cut at 21.5%, according to the CME FedWatch Tool.
Large technology stocks and shares of firms tied to the artificial intelligence trade like Vistra, Oracle, and Nvidia were dragging on the market on Tuesday. Market breadth was actually positive.
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