U.S. equities got singed by Powell references to risks of "overheating"
U.S. equities got singed by Powell references to risks of "overheating" but they were balanced against undershooting on the inflation front, so somewhat taken out of context. That said, Treasury yields shot to highs before cooling and the dollar index surged 0.5% to 90.30 (vs 90.50 highs), which seemed to corroborate the dip on Wall Street. The Dow is 0.3% lower, while S&P and NASDAQ are off roughly 0.5%. Europe closed mostly on the defensive and underwater in the midst of Powell testimony. VIX equity volatility is still up some 12% near 17.82, having probed as high as 18.34, highest since Friday. NYMEX crude eased 1.3% to $63.10 bbl. Within the Dow the deepest decliners were Disney -4% (after Comcast bidding war for Sky over Fox), Nike -1.8% and Merck -1.3%. On the upside are Intel +2.1%, Boeing +1.4% and Chevron +0.5%.