The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to move back to the upside after moving notably lower over the two previous sessions.

The futures remained positive as the Federal Reserve released Fed Chair Jerome Powell’s prepared remarks before the House Financial Services Committee.

Powell will tell members of Congress that it will likely be appropriate for the central bank to begin lowering interest rates at “some point this year” but reiterate officials need “greater confidence” inflation is moving sustainably toward 2 percent.

The Fed Chief described the economic outlook as “uncertain” and said progress towards the Fed’s 2 percent inflation objective is “not assured.”

“Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent,” Powell said.

He added, “At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Powell said future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.

Meanwhile, a report released by payroll processor ADP showed private sector employment in the U.S. increased by slightly less than expected in the month of February.

Following the modest pullback seen during Monday’s session, stocks showed a more substantial move to the downside during trading on Tuesday. The major averages all moved notably lower, with the tech-heavy Nasdaq showing a particularly steep drop.

The major averages climbed off their worst levels going into the close but remained firmly negative. The Nasdaq plunged 267.92 points or 1.7 percent to 15,939.59, the S&P 500 tumbled 52.30 points or 1.0 percent to 5,078.65 and the Dow slumped 404.64 points or 1.0 percent to 38,585.19.

The weakness on Wall Street came as traders continued to cash in on recent strength in the markets, which lifted the S&P 500 and the Nasdaq to record closing highs last Friday.

Uncertainty about the outlook for interest rates also weighed on the markets ahead of congressional testimony by Federal Reserve Chair Jerome Powell.

Powell is due to testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.

The Fed chief is likely to reiterate recent comments stressing the central bank needs greater confidence inflation is slowing before cutting interest rates.

The next monetary policy meeting is scheduled for March 19-20, with the Fed widely expected to leave interest rates unchanged.

In U.S. economic news, a report released by the Institute for Supply Management showed U.S. service sector growth slowed by slightly more than expected in the month of February.

The ISM said its services PMI fell to 52.6 in February after climbing to 53.4 in January. While a reading above 50 still indicates growth, economists had expected the index to show a more modest decrease to 53.0.

The Commerce Department also released a report showing a steep drop in new orders for U.S. manufactured goods in the month of January.

Software stocks showed a substantial move to the downside on the day, resulting in a 3.4 percent nosedive by the Dow Jones U.S. Software Index down.

Among software stocks, GitLab (NASDAQ:GTLB) plummeted by 21.0 percent after the company reported better than expected fourth quarter results but provided disappointing guidance.

Significant weakness was also visible among semiconductor stocks, as reflected by the 2.1 percent slump by the Philadelphia Semiconductor Index.

Commercial real estate, housing and transportation stocks also saw notable weakness, while banking stocks showed a strong move to the upside.