U.S. Stocks Come Under Pressure Following Powell Comments

Market Performance - Major stock indices, including the Dow, Nasdaq, and S&P 500, have shown a notable decline, with the Nasdaq down 197.61 points (0.9%), S&P 500 down 35.53 points (0.5%), and Dow down 96.69 points (0.2%) [2] - The decline in stock prices may be attributed to concerns over overvaluation following comments from Federal Reserve Chair Jerome Powell [2][3] Federal Reserve Insights - Jerome Powell described equity prices as "fairly highly valued" and highlighted the Fed's challenging situation regarding inflation and employment risks [3] - Powell emphasized the need to balance the dual mandate of inflation control and employment stability, indicating that aggressive easing could leave inflation unaddressed, while prolonged restrictive policies could harm the labor market [4] Sector Performance - Software stocks faced significant selling pressure, leading to a 1.4% decline in the Dow Jones U.S. Software Index, which had previously reached a record high [6] - Retail stocks also showed weakness, with the Dow Jones U.S. Retail Index down by 1.1% [6] - In contrast, energy stocks performed strongly, with the Philadelphia Oil Service Index surging by 4.0% and the NYSE Arca Oil Index increasing by 2.0% due to rising crude oil prices [7] Company-Specific News - Nvidia's shares fell by 3% after a previous surge of nearly 4% to a record high, influenced by its strategic partnership with OpenAI to deploy Nvidia systems for AI infrastructure [4][5]