U.S. inflation data in focus as treasury yields show mixed signs

On Wednesday, the stock market dipped as investors waited for a crucial U.S. inflation report to be released later in the week.

At 5:00 a.m. ET, the 10-year Treasury yield decreased to 3.8273%, while the yield on the 30-year Treasury remained unchanged at 3.865%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

On Friday, market participants will anticipate the publication of U.S. personal consumption expenditures (PCE) data to gain insight into the condition of the world's largest economy. The Federal Reserve employs the PCE measure as its primary benchmark for assessing inflation.

Powell's statement that "the time has come for policy to adjust" has increased expectations for a rate cut at the central bank's next meeting, but he did not provide specific details on the timing or extent of the cut.

Powell stated in his keynote address at the Fed's annual retreat in Jackson Hole that the direction of travel is clear, but the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.

The Fed's Sept. 18 meeting is expected to result in a rate cut, with traders pricing in a 63.5% chance of a 25-basis-point cut and a 36.5% chance of a 50-basis-point cut, according to the CME Group's FedWatch Tool.

— CNBC's Jeff Cox contributed to this report.