Major indices are wavering this afternoon as Fed Powell told Congress that Fed and Co. are struggling to determine how much tariffs will impact inflation. Notably, the Nasdaq 100 (NDX) hit a new record high.

Magnificent Seven names are mostly moving higher, led by Alphabet (GOOG/L) and Nvidia (NVDA). The exception is Tesla (TSLA) which is moving lower after its European sales fell in May for the fifth month in a row.

Four sectors are moving higher, with Technology (XLK) well in the lead. On the other hand, Real Estate (XLRE) is the laggard, followed closely by Consumer Discretionary (XLY) and Utilities (XLU).

The ten-year treasury yield (TNX) is slightly higher today, holding support around the 200-day moving average.

The market lost steam after President Trump commented to reporters this morning at the NATO summit conference that Powell is a “very stupid person” and announced he has a shortlist of 3 or 4 people for next Fed chair.

The odds of a rate cut in July continue to trend higher as Powell admits the possibility of being wrong on tariff inflation.

On the economic front, new home sales fell by 13.7% M/M to a seasonally adjusted annualized rate of 623,000 unit in May, well below the 9.6% increase in April and missing the forecast of 690,000.