Global Markets React to Powell's Testimony

Global equities fluctuated while U.S. Treasury yields rose after Federal Reserve Chair Jerome Powell indicated more good data might lead to rate cuts, but did not specify timing. Investors remain cautious amid mixed market responses and await further economic indicators before making any major moves.

Global equities displayed mixed reactions as U.S. Treasury yields edged up following Federal Reserve Chair Jerome Powell's statement that further positive economic data could support the case for rate cuts. However, Powell refrained from providing definite timing for any potential easing measures.

Powell expressed confidence that inflation would align with the Federal Reserve's targets, highlighting potential risks to the job market and overall economy if interest rates remain elevated for too long. His comments came during the first day of a two-day testimony before Congress.

Markets showed cautious responses; Wall Street indices stayed above previous levels but did not reach session highs, while bond yields climbed. The probability of a rate cut in September remains high, though slightly lower than earlier estimates. Investors await further data, including an upcoming consumer price report, to gauge future movements.

(With inputs from agencies.)