Stocks Dip as 'Trump Trade' Loses Momentum; Powell's Remarks Awaited

U.S. stocks declined as investors reacted to Federal Reserve Chair Jerome Powell's comments on maintaining a cautious approach to interest rate cuts due to economic strength and persistent inflation. The market was also influenced by concerns over the inflationary impact of proposed Trump administration policies. Tesla shares fell after reports suggested the potential elimination of electric vehicle tax credits, while Nvidia led gains in the chip sector. Treasury yields rose, reflecting ongoing inflation concerns.