Responding to concerns about proposed regulations tightening oversight of larger banks, Powell reassured members of the Senate Banking Committee that the rules were still in the drafting stage. He also expressed concerns about how increased capital requirements might impact lending conditions. "More capital means more stable banks and stronger banks, but there's also a trade-off there. You've got to make a judgment about where you draw that line," Powell stated.

The Fed chairman believes that new requirements should not apply to banks with less than $100 billion in assets. This brought some relief to Republican lawmakers who doubted the need for changes. If that is the case, the new rules will apply to roughly 25 of the largest banks in the US.

Premarket movers

Shares of Starbucks declined by 1.1% in premarket trading after a workers' union announced that some stores would go on strike today following claims that the company did not allow its cafes to be decorated for Pride Month.

Used car retailer CarMax, experienced a 6.8% surge after its Q1 revenue exceeded expectations. The firm posted revenues of $7.69 billion, above the analysts' estimates of $7.49 billion.

Shares of Virgin Galactic tumbled by 12.4% during the premarket. The slump followed the company's announcement of raising $300 million via a common share issuance, with the company signalling its plans to secure an additional $400 million for spacecraft fleet enhancements.

Home goods retailer Wayfair advanced by 1% after MoffettNathanson upgraded the stock to "hold" from a previous "sell" rating. The investment firm cited Wayfair's perceived benefits from the bankruptcy of rival Bed Bath & Beyond as a reason for the upgrade.

Shares of Accenture declined by 1.5% in premarket trading as investors seized the opportunity to take profits in light of a less than stellar earnings report. Despite the recent dip, Accenture's shares have risen by 15% growth since the beginning of 2023.

As for the technical picture of the S&P500, demand for the index is declining. Bulls still have a chance to continue the uptrend, but they will need to regain $4,383 and $4,416, from which the index might surge to $4,447. An equally important task will be maintaining control over the $4,488, which will reinforce the bull market. Should a risk-off mood lead to a downward move, bulls will need to act around $4,350. A break below this level will quickly push the trading instrument back to $4,320 and open the way towards $4,290.