SPX daily chart

The S&P 500 is now flat after erasing a more-than 50 point decline. The Nasdaq is up 0.4% to lead the way.

The market may be reflecting falling Treasury yields. US 2-year notes are down 12 bps to 3.07%, down from a peak of 3.43% last week.

Another driver may be Powell, who cited demand destruction. That's a sign the Fed could be one-step towards slowing or pausing on rate hikes.

Finally, the drop in oil prices is directly deflationary and that's likely a factor.