- Stocks fell on Tuesday as the second-quarter rally faded, with investors nervous about Powell's testimony later this week. Treasury yields increased.
- The S&P 500 suffered its first two-day loss in four weeks, as the US equity benchmark traded off recent 14-month highs. The Nasdaq 100 ended the session unchanged as Tesla shares protected the tech-heavy index from further losses. Nike fell due to inventory concerns, while PayPal Holdings rose following a loan agreement with KKR & Co.
- Investors caught between fear of missing out and concerns that markets have run too far, too fast are dealing with overpriced assets and hawkish Fed signals.
- Another unknown is the path of US monetary policy. On Wednesday, Federal Reserve Chair Jerome Powell will deliver his semi-annual report to Congress. The Fed's policymakers kept interest rates unchanged at their most recent meeting, but warned of further tightening ahead. Investors are also looking forward to the outcomes of policy meetings in Turkey, the United Kingdom, and Switzerland.
