** Shares of U.S. homebuilders slide on Weds after Fed chair Powell says no decision yet on rate cuts

** Markets now pointing to odds dropping below 50% that the Fed will cut rates at its next meeting in Sept, as benchmark U.S. 10-year yield US10YT=RR extends rise US/

** Rising yields can potentially lead to higher mortgage rates, which could negatively impact homebuilders by making homes less affordable for consumers

** PHLX Housing Index .HGX dropping >2% on the session

** Among biggest HGX fallers are: LGI Homes LGIH.O 5%, DR Horton DHI.N >2%, Lennar LEN.N nearly 3%, Pultegroup PHM.N >3%

** In S&P 500 .SPX, building products maker Builders FirstSource BLDR.N down 5%, and home improvement retailers Home Depot HD.N and Lowe's LOW.N both off nearly 2%

** With moves on Weds, HGX down ~2% YTD vs 8% advance in SPX

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))