- Stocks gave back some of this year's gains, with traders waiting to see if Powell's recent remarks will dampen the bullish reaction, amid bets that the Fed maintain its firm grip on policy.

- Treasuries took a hit as equities recovered from overbought levels following the best start to a year for cross-asset returns since 1987. In an interview on Tuesday, the Fed's chairman will have the opportunity to remind Wall Street that bets on rate cuts in 2023 are probably misplaced. Fed funds futures indicate that another 25 basis point hike in March is almost certain, with a 75% chance of another in May. The chances of a June hike have also increased.

- Fed Bank of Atlanta President Bostic stated that the strong jobs report in January raises the possibility that the central bank will need to raise interest rates to a higher peak than previously anticipated.

- Geopolitical concerns were also simmering in the background, with the United States preparing to impose a 200% tariff on Russian-made aluminium and US-listed Chinese shares plummeting as Washington moved to shoot down an alleged surveillance balloon from the Asian nation.