Investors are closely watching Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday.
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Tech stocks recovered some of their earlier losses midday Tuesday, after Federal Reserve Chair Jerome Powell began hotly anticipated testimony before Congress and largely reiterated his frequently dovish remarks of late.
The Dow Jones Industrial Average was down 60 points, or 0.2%, while the S&P 500 fell 0.5%. The Nasdaq Composite dropped 1.5% after losing 2.5% on Monday. All three indexes were well off their worst levels of the morning, which came shortly after the opening bell.
Powell began the first of two speeches before Congress this week on Tuesday morning. Topics included monetary policy and the state of the economy, with the Fed chair emphasizing that the recovery has a “long way to go.” Essentially, the central bank won’t be taking its foot off the stimulus gas pedal until unemployment falls significantly and inflation looks to remain above its 2% target for an extended period. Powell also didn’t address the recent sharp rise in Treasury yields much, or whether that could cause rising borrowing costs to dampen the pace of the recovery.
The yield on the 10-year U…