Wall Street ends over 1% in the red after Powell's testimony

US stock indices closed the second session of the week lower in a break with recent sessions, as 10-year US bond yields returned higher after Federal Reserve Chair Jerome Powell's testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, earlier today. 

In his testimony, Powell expressed admiration for former Chair Janet Yellen's work to strengthen the economy and normalize the balance sheet, lauding her for helping to smooth out the transition and provide continuity in monetary policy. 

Powell expected the Fed to continue tightening monetary policy gradually, while pointing to economic outlook as strong, asserting the importance of balancing the push of inflation just towards the target and not beyond it, adding that labor strength will underpin spending and income. 

On Thursday, Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC, thus completing the second half of his Congress testimony. 

Earlier US data showed durable goods orders fell 3.7% in January, compared to a 2.8% rise in December, and missing expectations of a 2.4% drop, while core orders also fell 0.3%, compared to a 0.7% rise in December and missing forecasts of 0.4% rise. 

The goods trade deficit widened while wholesale inventories rose past expectations in January, as the House Price index slowed more than expected in December. 

The Richmond Manufacturing Index rose to 28 in February from 14 in January, beating expectations of 15, while the CB consumer confidence survey rose to 130.8 in February from 124.3 in January, beating forecasts of 126.2. 

Dow Jones tumbled 1.16%, or 299.24 points to 25,410.03, while Standard and Poor's 500 shed 1.27%, or 35.32 points to 2,744.28, as NASDAQ Composite dropped 1.23%, or 91.11 points to 7,330.35. 

Gold futures due on April 15 fell 0.99% to $1,319.60 an ounce from the opening of $1,332.80, marking February 9 lows, while the dollar index jumped 0.61% to 90.40 from the opening of 89.85. 

Otherwise, US West Texas Intermediate (WTI) futures slumped 1.61% to $62.88 a barrel from the opening of $63.91, while Brent futures due on April 15 fell 1.42% to $66.54 a barrel from the opening of $67.50, with prices moving away from early February highs.