Wall Street’s main indexes lost ground on Monday after Federal Reserve Chair Jerome Powell pushed back firmly against speculation that rate cuts were imminent.

The Dow shed seven-tenths of a percent, the S&P 500 dropped three-tenths and the Nasdaq lost two-tenths of a percent. In a tv interview, Powell said more evidence of a sustained downward trend in inflation is needed to warrant lower rates.

Sam Stovall, chief investment strategist at CFRA Research, said investors on Monday were “reacting to reality.” In earnings news, shares of Caterpillar rose 2% after the bellwether beat estimates with a double-digit jump in operating profit.

Shares of Estee Lauder soared 12% as the MAC lipstick maker aims to cut about 3% to 5% of its workforce to shore up margins.

Tesla shares shed more than 3.5% – hitting a near one-year low – after Piper Sandler slashed the stock’s price target and on a report that German software company SAP will no longer source its company cars from the EV maker.

Nvidia shares rose more than 4.5% to hit a record high after Goldman Sachs raised its price target on the chipmaker.