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STORY: Powell, appearing before the Senate Banking Committee, said the U.S. is "no longer an overheated economy."

Stovall said Powell also indicated that "the labor market is in balance, and a further softening of the overall economy and the labor market could be reason to cut rates."

"You would think that the 10-year yield would have declined," said Stovall, given that the yield is a proxy for borrowing costs. "Also, you would have expected the smallcap benchmark, the Russell 2000, to have risen. But in fact both of them went in the opposite direction."

Speaking with Reuters' Lisa Bernhard, Stovall joked that investors "are pretending to be from Missouri" - known historically as the "Show Me" state - and saying [to Powell], "you have to show me that this is going to happen."