12:08 PM EDT, 07/09/2024 (MT Newswires) -- The Toronto Stock Exchange is down 46 points at midday, with most sectors lower.

The biggest decliners are telecoms (-1%) and technology stocks (-0.9%).

The financials sector is the sole gainer, up 0.35%.

Oil prices weakened for a third-straight session early on Tuesday as demand concerns continue while Hurricane Beryl passed over the Texas refining hub on Monday with little damage to refineries and ports.

But gold edged higher even as the dollar edged higher ahead of two days of congressional testimony by Federal Reserve chair Jerome Powell and key inflation reports coming later this week.

In terms of market focus, BMO Economics noted that on the U.S. docket for this morning is Fed Chair Powell's congressional testimony on the semi-annual Monetary Policy Report before the Senate Committee on Banking, Housing and Urban Affairs (the House Financial Services Committee is tomorrow). BMO expected the themes of June 12's policy pronouncements to be repeated. And, BMO said, there could be some emphasis on the fact that, despite there being more work to do to get inflation sustainably to 2%, significant progress has been made in the quest for price stability (similar to comments made last week by both Powell and New York Fed President Williams). It will not be lost on the politicians that this will be the last such confab before November's elections, which could make the Q&A more interesting, BMO noted.

Ordinarily, Scotiabank noted, there could be high stakes attached to what Powell may say as he delivers round one of his two days of Congressional testimony starting with the Senate Banking Committee. Scotia noted there will be written testimony made available at the beginning before Senate leaders deliver opening comments that are likely to be even more politicized than normal, and then banter ensues. If the testimony matters at all, then it could be via comments on potential regulatory changes and because there is little else for markets to focus upon as they wait for US CPI on Thursday, Scotia added.

On the opening comments, Reuters cited Powell as saying inflation "remains above" the U.S. Federal Reserve's 2% target, but has been improving in recent months and "more good data would strengthen" the case for central bank interest rate cuts. In comments that appeared to show increasing faith that inflation will return to the Fed's target, a requirement for easing monetary policy, Powell compared the lack of progress on that front in the first months of the year to recent improvement that has helped build the Fed's confidence that price pressures will continue to diminish, Reuters is reporting. As well, the chair noted, the Fed is now also concerned about risks to the job market and economy should rates remain too high for too long.