LIVE updates: Market reaction, Fed Chair Powell testifies on economy

Techs led drop on Wall Street

Federal Reserve Chair Powell delivered his testimony on the state of the U.S. economy in his Semiannual Monetary Policy Report Tuesday.

He reminded lawmakers that while the recovery remains uncertain,  a wider rollout of the COVID-19 vaccine can help steady the economy.

FED'S POWELL SAYS US ECONOMIC OUTLOOK STILL 'HIGHLY UNCERTAIN,' BUT WIDER VACCINE ROLLOUT KEY

Stocks, led by a sharp drop in the Nasdaq, maintained losses but staged a late-day comeback which traders attributed to Powell's commitment to maintaining support for the U.S. economy.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES30932.37-469.64-1.50%
I:COMPNASDAQ COMPOSITE INDEX13192.345407+72.91+0.56%
SP500S&P 5003811.15-18.19-0.47%

Powell took questions from lawmakers on a wealth tax while reject pumping the brakes on monetary policy any time soon.

He did however dodge a few direct questions on the $1.9 trillion COVID-19 relief bill looming on Capitol Hill and a higher minimum wage.

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