Stock market today: Dow, S&P 500, Nasdaq slide as Powell sees 'challenging situation' ahead for Fed

Market Overview - US stocks experienced a decline on Tuesday, with the Dow Jones Industrial Average falling 0.3%, the S&P 500 decreasing by approximately 0.6%, and the Nasdaq Composite losing around 1% [1][2]. Federal Reserve Insights - Fed Chair Jerome Powell indicated a cautious approach towards further rate cuts, emphasizing that equity prices are "fairly highly valued" [3][4]. - Powell highlighted the challenges of balancing inflation and employment risks, stating that near-term inflation risks are tilted to the upside while employment risks are to the downside [3][4]. Economic Indicators - The upcoming release of the Personal Consumption Expenditures index is anticipated, as Wall Street seeks signs of persistent inflation that could impact expectations for additional rate reductions this year [4]. - Recent data showed a cooling in US business activity for the month, alongside a rise in prices paid for materials, indicating ongoing price pressures [4]. Technology Sector Focus - Micron Technology's quarterly earnings report is expected, with analysts predicting nearly a 40% increase in sales driven by AI-related demand [5].