Markets Falter as Fed Chair Powell Raises Alarm on Stock Valuations
U.S. stock markets dipped as investors secured profits and analyzed comments from Federal Reserve Chair Jerome Powell, who indicated that stock valuations might be overstretched. With inflation data approaching, investors are weighing potential rate cuts amidst economic uncertainties and recent record high index closures.
In a significant market shuffle, U.S. stocks retracted as investors seized the opportunity to secure profits, following remarks from Federal Reserve Chair Jerome Powell regarding potentially inflated stock valuations. The market turn comes ahead of crucial inflation data set for release later this week.
As major indices, including the S&P 500, hit record highs earlier, Powell's comments echoed historic warnings of price exuberance. Last week's rate cut bolstered equities, but the current market scene faces mixed reactions over potential further easing measures.
Amid falling major indexes, the materials sector suffered, notably Freeport-McMoRan's steep decline, while the energy sector witnessed gains due to rising crude prices. Newly constructed home sales rose unexpectedly, and investors now await personal consumption expenditures data for more insights.
(With inputs from agencies.)
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