Following the mixed performance seen in the previous session, stocks are poised to move to the upside in early trading on Tuesday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Stocks may benefit from optimism about the outlook for interest rates ahead of several key economic events this week.
However, early trading is likely to be impacted by reaction to remarks by Federal Reserve Chair Jerome Powell, who is due to deliver his semi-annual monetary policy testimony before the Senate Banking Committee this morning.
Powell is also scheduled to testify before the House Financial Services Committee on Wednesday, with his remarks potentially having a significant impact on the outlook for rates.
Later in the week, the Labor Department is scheduled to release reports on consumer and producer price inflation, which could have an even more profound impact on interest rate expectations.
If the report on consumer prices shows an expected slowdown in the annual rate of price growth, it could bolster optimism about a rate cut in September.
U.S. stocks ended mixed on Monday, turning a bit sluggish after a fairly good start. Among the major averages, the Nasdaq and the S&P 500 moved on to new record highs, while the Dow ended in negative territory.
The Dow edged down 31.08 points or 0.1 percent to 39,344.79. The S&P 500 ended higher by 5.66 points or 0.1 percent to 5,572.85, while the Nasdaq rose 50.98 points or 0.3 percent to 18,403.74.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index surged by 2.0 percent, while China’s Shanghai Composite Index jumped by 1.3 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index has slumped by 0.9 percent, the German DAX Index is down by 0.5 percent and the U.K.’s FTSE 100 Index is down by 0.3 percent.
In commodities trading, crude oil futures are slipping $0.43 to $81.90 a barrel after sliding $0.83 to $82.33 a barrel on Monday. Meanwhile, after plunging $34.20 to $2363.50 an ounce in the previous session, gold futures are inching up $3.90 to $2,367.40 an ounce.
On the currency front, the U.S. dollar is trading at 161.08 yen compared to the 160.83 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0813 compared to yesterday’s $1.0824.
Business News
U.S. Stocks May Move To The Upside Ahead Of Powell Testimony
2024-07-09 12:30:44
