U.S. stocks (^GSPC, ^DJI, ^IXIC) are rising on Wednesday morning following a decline in large tech stocks that pushed the Nasdaq 100 (^NDX) to its lowest level in over a month. Federal Reserve Chairman Jerome Powell is also scheduled to testify on Capitol Hill over the next two days, which could further influence overall market movements.
Peter Chill, head of macro strategy at Academy Securities, joins Yahoo Finance to discuss why he thinks the Fed chair needs to remain cautious in his testimony.
With a monetary policy decision looming, the Fed remains, in Chill's assessment, “not playing a significant role.” “We're in exactly that kind of framework, where interest rates have probably peaked and we know they'll peak within the next year or two. “They'll probably go down, if they go up. , it's probably because the economy is strong and the employment is great, so we can probably absorb that. I'd probably be more nervous if we had to cut more than two or three times this year.” “That's because the economy is really slowing down. So we may not be able to weather that storm very well. They're really on the sidelines and understanding whether AI is real or not. I think it's much more important. We all know it's real, and in three or five years' time, the roads are going to get better, but people are not paying attention to the cost-effectiveness now. Are they enjoying the benefits they deserve, and is their evaluation meaningful?”
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Editor's note: This article was written by Nicholas Jacobino
