“We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we’re trying to achieve,” Powell said. “But you’re right, by many measures, for example, equity prices are fairly highly valued.”

It wasn’t an irrational exuberance moment yesterday, but the Chair of the Federal Reserve opined on the stock market being “fairly highly valued.” He also harped on about inflation.

Defensive stocks performed well, as low volatility, revenue, and value edged higher.

Beyond Tech  

Selling growth wasn’t devastating, but there was a smattering of profit-taking.

After the close, Micron Technology (MU) popped on its earnings release, only to drift back to earth.

Investors Looking for New Love

Recent equity sector flows have seen Technology (XLK) slip to the fifth most popular sector – I think that snaps a two-plus-year run at the top.

Today’s Session

Major indices are looking to open in the green this morning.

We are watching treasury yields this morning. The 10-year yield (TNX) continues to show strength following the rate cut, ticking up to 4.13% this morning.

In other news, the Trump administration is proposing to take a stake in Lithium Americas (LAC) as part of renegotiating the companies $2.3B Energy Department loan. This announcement sent shares surging. Lithium Americas is developing one of the largest Lithium Mines in the world in Thacker Pass, Nevada.