Address

Precise Investors

Thursday, August 5, 2021
Stocks & Shares

U.S. stock futures mixed ahead of Powell’s testimony

stock futures

U.S. Federal Reserve Chairman Jerome Powell’s will deliver the Fed’s semiannual report to Congress on the economy

U.S. stock futures are trading mixed ahead of Federal Reserve Chairman Jerome Powell’s two-day testimony before Congress.

The major futures indexes are expected to decline slightly on the Dow when trading begins on Wall Street.

Powell will deliver the Fed’s semiannual report to Congress on the economy. Investors will wait for cues on monetary policy related to rising inflation. Central bank officials have said that they believe pricing pressures will be short-lived.

A report on Tuesday showed consumer prices in June rose by the most in 13 years. The report adds to worries that the Fed might consider withdrawing its low-interest rate policies and scale back its bond purchases earlier than expected.

Traders will get another look at inflation when the Bureau of Labor Statistics reports wholesale price data for June.

According to Refinitiv forecasts, headline PPI is expected to increase 0.6% month-over-month, slightly lagging May’s 0.8% rise. Year-over-year, prices paid by wholesalers are anticipated to jump 6.8%, up from 6.6% in May.

The series of financial-sector earnings continues Wednesday with Bank of America, Wells Fargo, Citigroup, BlackRock and PNC Financial Services all posting ahead of the opening bell.

In Asia, Japan’s benchmark Nikkei 225 shed 0.4%, Hong Kong’s Hang Seng declined 0.7% and China’s Shanghai Composite tumbled nearly 1.1%.

The S&P 500 dropped 0.4% on Tuesday, with most of the companies in the benchmark index lower. The pullback brought the major stock indexes slightly below the record highs they set a day earlier. The Dow Jones Industrial Average shed 0.3% to 34,888.79, while the Nasdaq declined 0.4% to 14,677.65.

Bond yields dropped to 1.40% from 1.42% late Tuesday. Overall, yields have been trending lower following a sharp spike earlier in the year.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

1 × 4 =