Fed Chair Powell’s comment now tilt to the hawkish side, which spooked the markets that are near sessions lows.  Powell warned that the central bank could speed up interest rate hikes and that the termina rate “is likely to be higher than previously anticipated.”

Meanwhile, market probability of 50bps hikes in March rises to 60%.

Among the notable market reactions from today’s testimony is the 2y10y curve inversion, breaking the negative 100 basis point level. This was not seen since 1980.

All sectors posting losses with Utilities and Real Estate leading. Consumer Discretionary is the least bad performer, helped by solid results and guidance from Dick’s Sporting Goods (DKS).

It is going to be interesting to see if buyers show into the close.