At noon AEST on Wednesday, the benchmark S&P/ASX200 index was down 36.8 points, or 0.47 per cent, to 7,792.9, and the broader All Ordinaries had dropped 40.5 points, or 0.5 per cent, to 8,034.7.
Since early June the ASX200 has traded in an increasingly narrow band, a compression pattern that usually eventually results in a big move in one direction or the other.
But Mr Powell's testimony to the US Senate Banking Committee, the sole focus of market attention overnight, was not to be that catalyst even as the S&P500 overnight notched up its 36th closing high of 2024.
"Powell did little to sway market expectations for rate cuts this year, unveiling a more balanced assessment of inflation and growth risks, while consciously avoiding any near-term guidance," wrote Westpac economist Jameson Coombs.
Every sector of the ASX was lower at midday except telecommunications, which was up 0.9 per cent on more gains for Telstra, which had gained 1.8 per cent to a fresh three-month high of $3.80 after announcing price increases on Tuesday.
The materials sector was the biggest loser, down one per cent. BHP and Fortescue had both dropped 1.2 per cent while Rio Tinto was 0.7 per cent lower.
The Big Four retail banks were mixed, with ANZ up 1.0 per cent while CBA and Westpac had both dropped 0.7 per cent and NAB had edged 0.1 per cent lower.
Insurance companies, whose bottom line tends to benefit from higher rates, were mostly higher.Â
IAG had gained 1.8 per cent, while Suncorp and QBE had both risen 1.4 per cent.
The Australian dollar was buying 67.38 US cents, from 67.46 US cents at Tuesday's ASX close.
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