The selling pressure in US equities intensifies

The Nasdaq is now down 1.3% and the S&P 500 down 0.85% — both session lows.

Some stops were hit on the latest leg down as the earlier lows gave way. There is some real angst ahead of Powell tomorrow but at least the weak hands are getting shaken out early.

I don’t see any scope for him saying something that will genuinely rattle markets. I’m more focused on what he will say about the strength of the economy, than on inflation or directly on rates. However he’s been consistently upbeat on growth prospects for years, so that’s the baseline. Or maybe that comes off sounding hawkish?

This article was written by Adam Button at www.forexlive.com.