"Investors are not in full risk-on mode," said Eamon McCooey, head of prime services at Wells Fargo WFC.N, adding his clients' dry powder are close to peak levels. On Wednesday, Federal Reserve's chair Jerome Powell said future interest rates hikes could go higher than market participants anticipated to fight inflation. However, their long wagers minus short ones, known as net exposure - a measure of directional risk appetite - is close to a year low of 66%, Goldman Sachs showed.