**Market Dips Following Powell’s Remarks; Dow Drops 360 Points**

The U.S. stock market took a downturn after Federal Reserve Chair Jerome Powell addressed the National Association for Business Economics on Monday, especially during the Q&A portion of his appearance. The Dow Jones Industrial Average saw a significant fall, dropping 360 points. This came after Powell hinted that the anticipated interest rate cuts would be more modest than some investors had hoped for.

Both the S&P 500 and the Nasdaq Composite followed suit, with declines of 0.5% and 0.6% respectively. Although the three key indexes have since clawed back some of their losses, they remain in the red. Powell’s actual speech was succinct, described as "short and sweet" by the moderator, but the pointed questions that followed led to noticeable market declines.

During his Q&A session, Powell suggested that if the economy performs as forecasted, a total of 50 basis points of cuts could be expected for the remainder of this year. Consequently, this would likely mean a mere quarter-point cut at the upcoming November meeting, far below the half-point cut that some investors had predicted.

Fixed income markets reacted as well. The yield on 2-year Treasuries, which is more sensitive to policy changes, rose from 3.6% before Powell's speech to 3.655% afterward, indicating that bond traders were anticipating a quicker reduction in rates. Additionally, the 10-year Treasury yield breached a significant level, rising to 3.803%, marking the first time it has crossed the 3.8% threshold since the start of the month. Barron's had listed Powell as one of several catalysts that could potentially awaken the 10-year yield from its sluggish September.