Stocks End Mixed as Powell Signals Delayed Rate Cuts

U.S. stocks experienced fluctuations following Federal Reserve Chair Jerome Powell’s cautionary remarks indicating that interest rate cuts may be delayed due to persistent inflation concerns. During a discussion at the Wilson Center, Powell expressed that recent data did not bolster confidence in quickly reaching the Fed’s 2% inflation target, suggesting a more prolonged period of high rates. This led to mixed results in the stock market, with the Dow slightly up by 0.2%, while the S&P 500 and Nasdaq both declined. Concurrently, the 2-year Treasury yield briefly crossed the 5% mark, underscoring the market’s reaction to the anticipated continuation of restrictive monetary policy.