"Powell's Speech Sparks Bond Yield Resurgence, Wall Street Mixed"

Bond yields surged and stocks tumbled after Federal Reserve Chair Jerome Powell delivered a speech with hawkish overtones, expressing concerns that monetary policy may not be sufficiently restrictive to bring inflation down to 2 percent. Powell also acknowledged the risk of overtightening but stated that monetary policy is generally working as intended. Major U.S. indexes fell, breaking their winning streaks, while European stocks were boosted by strong corporate earnings. Tesla shares sank after HSBC Global rated the company as "reduce" and SoftBank recorded a quarterly loss due to the collapse of WeWork. Additionally, Goldman Sachs believes the Federal Reserve will need to hold long-term rates higher than the projected neutral interest rate of 2.5 percent.