The S & P 500 is on track to reach a new record on Thursday after losing three points less than the July 3 record.
The Dow could also reach a new all-time high, after closing Wednesday at 0.4% of last week's record.
The market experienced a decline in slightly higher than previously forecasted consumer price data. Inflation rose 1.6% from one year to the next in June, as expected, but underlying inflation edged up to 2.1%, compared with the same month earlier. 2% expected. The increase in inflation does not bode well for the reduction in interest rates that the market is hoping for.
The forecast of a quarter point cut at the July 31 meeting of the Fed is 80%, the remaining 20% hoping a 50 basis point decrease, according to the tool FedWatch of the CME.
In his remarks to the Financial Services Committee Wednesday, Powell noted that inflation remained below the 2% target of the central bank.
According to other data, jobless claims for the week ended July 6 were slightly lower than forecast.
Powell will appear before the Senate Banking Committee at 10:00 am Eastern Time, where he will close his semiannual testimony.