Stocks closed lower on Tuesday as investors braced themselves for Federal Reserve Chairman Jerome Powell’s testimony in Congress on Wednesday. In addition to the potential implications of Powell’s address, investors remain concerned about China’s flailing economic growth.
The S&P 500 slid 0.47% lower, while the Dow Jones Industrial Average declined by 0.72%, or a little over 200 points. The tech-heavy Nasdaq Composite Index edged just 0.16% lower.
China’s economic health has once again been brought into the spotlight after the nation’s central bank implemented an interest rate cut last week that fell short of expectations. Now, observers await news on a government stimulus package to aid economic growth.
Markets are also anxiously awaiting Fed Chair Jerome Powell’s two-day testimony, starting with the House Committee on Wednesday. Investors will be looking for clues on the direction that the Federal Reserve will be taking its interest rate policy in July following its June pause.
