Investor Uncertainty Lingers as Powell Addresses Ongoing Inflation Concerns

U.S. stocks experienced a shaky session as investors digested Federal Reserve Chair Jerome Powell’s testimony to Congress, where he emphasized that the central bank still has work to do in curbing inflation. The Dow Jones Industrial Average remained flat, while the S&P 500 declined by 0.4% and the NASDAQ Composite slipped by 1.2%. Powell stated that achieving the goal of bringing inflation down to 2% will require a significant effort. Futures traders anticipate a quarter-point rate hike in July, as the Fed aims to steer inflation towards its target. The recent rally in stocks, fueled by expectations of fewer rate hikes, has stalled in the past few trading sessions.