Stocks hit their session lows Wednesday just as Federal Reserve Chair Jerome Powell began his testimony in front of Congress. However, the main indexes quickly rebounded and climbed higher into the close.  

Speaking in front of the House Financial Services Committee, Powell stuck to his recent script, reiterating that the Fed needs more evidence that inflation is easing before rate cuts begin. "We are just being careful," the head of the central bank stated. 

However, Powell did say that lowering the federal funds rate will "likely be appropriate" later this year if the Fed can see more proof that inflation is "moving sustainably" toward its 2% target. 

Today's testimony "is a confirmation that the Fed is still seeing stubborn inflation as preventing an immediate rate cut," says Morgane Delledonne, head of investment strategy, Europe, at Global X. 

Wall Street will now turn to the next jobs report, due out Friday morning, to give more hints about the Fed's next move. "However, unless the unemployment rate unexpectedly rises significantly, there is little chance for the report to shift the current Fed's view that they need to see confirmation that inflation is back to its 2% target before cutting rates," Delledonne adds.

Wednesday's jobs data points to strong labor market

Today's economic data underscored strength in the labor market. For one, the Job Openings and Labor Turnover Survey (JOLTS) showed job openings in January were little changed vs December, staying slightly below 9 million.

Additionally, data from ADP showed the U.S. added 140,000 private payrolls in February, up from January's revised 111,000. 

"Job gains remain solid. Pay gains are trending lower but are still above inflation. In short, the labor market is dynamic, but doesn't tip the scales in terms of a Fed rate decision this year," said Nela Richardson, chief economist at ADP, in the report. 

Indeed, according to CME Group's ( CME ) FedWatch Tool, futures traders are currently pricing in a 57% chance the first quarter-point rate cut will come at the Fed's June meeting, roughly in line with yesterday's reading.

NYCB stock goes on a wild ride  

In single-stock news, New York Community Bancorp ( NYCB ) was down more than 45% at one point in intraday trading after the Wall Street Journal said the regional lender was considering a stock sale to bolster its finances. However, shares swung nearly 30% higher on news the bank received a $1 billion equity investment from a group that includes former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital. NYCB ended the day up 7.5%, but remains 66% lower year-to-date.

The embattled bank stock's woes began in late January when the company posted a surprise quarterly loss and slashed its dividend due to an unexpected surge in loan-loss reserves related to the commercial real estate (CRE) market. 

In today's congressional testimony, Chair Powell chimed in on the CRE market. While Powell admitted that challenges created by more folks working from home post-pandemic and higher interest rates are a "shock to the system" that will result in "losses by some banks," he also said that the challenges are "manageable."

Other notable movers Wednesday included Palantir Technologies ( PLTR ) , which popped 9.9% after the data analytics firm inked a $178 million government contract, and Foot Locker ( FL ) , which plunged 29.4% after athletic footwear retailer's disappointing earnings.

As for the main indexes, the Dow Jones Industrial Average rose 0.2% to 38,661, the S&P 500 gained 0.5% to 5,104, and the Nasdaq Composite added 0.6% to 16,031.