Powell Testimony Takeaways

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What’s in Today’s Report:

  • Powell Testimony Takeaways
  • Chart: RSP vs. SPY

Stock futures are little changed this morning while bond markets were largely steady overnight as investors digest yesterday’s dovish comments from Fed Chair Powell and look ahead to his testimony before the House today.

Economically, German GDP was slightly better than expected while the French Business Climate Indicator narrowly missed estimates however neither report moved markets as trader focus is on central bank policy this week.

Today, there is just one economic report to watch: New Home Sales (E: 855K) before investors will settle in for another day of Humphrey-Hawkins Testimony by Fed Chair Powell which begins around 10:00 a.m. ET.

With day one behind us, there are no surprises expected in today’s hearings however, how Powell responds to any specific questions about the pace of the recent rise in yields could impact the bond markets, and if yields rise to new highs, expect more selling pressure on big tech names to weigh down the broader equity indexes.