Powell reiterated he was in no rush to cut interest rates ahead of key inflation data – US Market Wrap
Treasury yields rose and stocks fluctuated after Federal Reserve Chair Jerome Powell reiterated that the central bank is not in a rush to cut interest rates.
Bonds fell across the curve, as money markets continued to fully price in the Fed’s one rate cut this year. The S&P 500 remained stuck in a narrow range. The majority of big tech stocks fell, but Meta rose for the 17th day in a row. Intel and GlobalFoundries surged after Vice President JD Vance stated that the US will ensure that the most sophisticated artificial-intelligence hardware is manufactured domestically.
Just a day before a key inflation reading, Powell indicated that officials will be cautious before further lowering borrowing costs while the economy remains strong. He also advised Congress that it is unwise to speculate on tariff policy at this time. Powell is scheduled to testify before the House Financial Services Committee on Wednesday.
The S&P 500 remained relatively unchanged. With a high-low range below 0.6% for two days in a row, the gauge was stuck in a period of tight trading not seen since mid-December. The Nasdaq 100 fell 0.3%. The Dow Jones Industrial Average gained 0.3%.
