US Treasury Secretary Janet Yellen cited on Tuesday that the United States economy is critically strong as the banking sector is strong and resilient, inflationary pressures are softening consistently, and labor demand is rising. This conveys an anticipation of a decent performance from the S&P500 ahead.

The US Dollar Index (DXY) has slipped again to near day’s low at 102.04 and is expected to test the crucial support of 102.00. The downside bias for US Dollar has been strengthened after light inflation guidance from Federal Reserve (Fed) policymakers. Minneapolis Fed Bank President Neel Kashkari sees inflation at the middle 3% by end of this year, closer to 2% next year.

Demand for US government bonds has turned choppy as investors are looking to make informed positions after the release of the US inflation and Fed minutes. The 10-year US Treasury yields are hovering around 3.43%.