Stock market today: Live updates

Making sense of the market's reaction to Powell's Senate testimony

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U.S. stock futures were flat on Tuesday night. The action follows a selloff stimulated by Federal Reserve Chairman Jerome Powell’s remarks suggesting rate of interest might require to go higher for longer.

Dow Jones Industrial Average futures ticked greater by 2 points, or 0.01%. S&P 500 and Nasdaq 100 futures slipped by 0.04% and 0.05%, respectively.

In routine trading Tuesday, the Dow closed almost 575 points lower and turned unfavorable for2023 The S&P 500 moved 1.53% to close listed below the essential 4,000 limit, and the Nasdaq Composite lost 1.25%. The sharp decrease for stocks was accompanied by a spike in bond yields, with the rate on the 2-year Treasury going beyond 5% and touching the greatest level because 2007.

The shakeup in markets followed Fed Chair Powell spoke prior to the Senate Banking, Housing and Urban AffairsCommittee He warned legislators that the reserve bank’s terminal rate will likely be greater than formerly expected due to stubbornly high financial information in current weeks.

“[Powell] is being really, really clear that if you take a look at what occurred over the previous year and a half, the call on inflation didn’t turn out,” Morgan Stanley’s international chief financial expert Seth Carpenter stated on CNBC’s “Closing Bell: Overtime.”

“I think now Powell is very much on board with the idea that he does not want to get caught flat-footed again, and so opening the door very wide for a 50 basis point hike was exactly what he did,” Carpenter included.

On Wednesday, financiers will be carefully viewing Powell speak prior to the House Financial ServicesCommittee Separately, Richmond Fed President Tom Barkin will likewise be speaking on the labor market Wednesday early morning. January’s task openings and labor turnover information is due, as is the ADP tasks report for February.