Stock Market Sets New Records as Investors Await Powell's Testimony

The stock market continues its record-setting climb as investors eagerly await Federal Reserve chair Jerome Powell's testimony to Congress. The S&P 500 and Nasdaq Composite have reached new highs, but concerns about a potential summer pullback and high expectations for the upcoming earnings season are causing some caution.

Investors are also questioning the recent rally in AI-linked stocks. Meanwhile, European stocks are set to open lower as investors await Powell's testimony for clues on the US interest-rate outlook.

Despite the positive performance of US stock markets, the German DAX remains cautious ahead of Powell's hearing. Additionally, there are warnings of a potential 10% correction in the US stock market, with analysts citing concentrated gains in tech stocks and overvaluation as factors.

Overall, the stock market's performance in the coming weeks will be closely tied to Powell's statements on monetary policy and the performance of tech giants during the earnings season.