Wall Street Braces for Powell's Testimony Amid Tariff Concerns

Wall Street's indexes were poised for a lower start as investors awaited Federal Reserve Chair Jerome Powell's testimony. Insights on tariffs and inflation are expected. Steelmakers reported gains after Trump's tariff announcement, and expectations for a Fed rate cut surged. Key corporate earnings also influenced market movements.

Wall Street's main indexes prepared for a weaker opening on Tuesday as investors keenly awaited Federal Reserve Chair Jerome Powell's upcoming testimony, seeking clarity on the impacts of tariffs and inflation in the U.S. economy.

Premarket trading saw declines in many megacap and growth stocks, influenced by President Donald Trump's decision to increase tariffs on steel and aluminum imports. Meanwhile, remarks from other Federal Reserve figures were also anticipated. The consumer price index set for release on Wednesday added to the market's anticipation, alongside Powell's expected testimony before significant Senate and House committees.

In the market, expectations for a 25-basis-point interest rate cut from the Fed soared, with LSEG data predicting a substantial chance for an additional cut within the year. Steelmakers like Cleveland-Cliffs reported gains, while major stocks such as Apple and Amazon registered declines. Strong earnings reports from companies like DuPont and Coca-Cola stood out, despite some disappointments in the tech sector.