Markets fall as new Fed chair Powell says inflation moving up

Markets mostly fell on Tuesday.

The S&P 500 plunged 1.3 percent, the STOXX Europe 600 fell 0.2 percent and the Shanghai Composite tumbled 1.1 percent. However, the Nikkei 225 jumped 1.1 percent.

The yield on the US 10-year Treasury note rose 4.8 basis points to 2.910 percent.

Weighing on markets was Federal Reserve Chairman Jerome Powell's congressional testimony, which highlighted the strengthening economy.

“We’ve seen some data that will, in my case, add some confidence to my view that inflation is moving up to target,” said Powell.

“Market participants interpreted Powell’s comments being hawkish, specifically that there may be more than three rate increases on the cards,” said Ryan Larson, head of equity trading at RBC Global Asset Management.