Market Snapshot: U.S. stock futures rise as investors weigh hawkish Powell remarks, Ukraine war

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U.S. stock index futures rose Tuesday, shaking off a wobble that followed remarks on Monday by Federal Reserve Chairman Jerome Powell signaling that the central bank could deliver bigger interest rate increases at coming policy meetings in a bid to rein in inflation currently running at a 40 year high.

What’s happening
  • Futures on the Dow Jones Industrial Average YM00, +0.50% rose 160 points, or 0.5%, to34,596.
  • S&P 500 futures ES00, +0.35% rose 14 points, or 0.3%, to 4,466
  • Futures on the Nasdaq-100 NQ00, +0.19% gained 24.50 points, or 0.2%, to 14,395.

Stocks stumbled Monday after Powell said the central bank could deliver hikes of 50 basis points, or half a percentage point, in future meetings, but ended the day well off session lows. The Dow fell 0.6%, snapping a five-day winning streak, while the S&P 500 SPX, -0.04% finished fractionally lower and the Nasdaq Composite COMP, -0.40% slipped 0.4%.

What’s driving markets

Treasury yields surged following Powell’s remarks on Monday and were extending the rise Tuesday. The 10-year Treasury note yield BX:TMUBMUSD10Y was at 2.339%, up around 2.5 basis points after rising to its highest since May 2019 on Monday.

There’s more commentary coming from Federal Reserve officials Tuesday, including New York Fed President John Williams.

Meanwhile, Russia intensified air and sea attacks across Ukraine, as President Joe Biden encouraged U.S. companies to harden their cyber defenses against Russia.

Goldman Sachs analysts said markets have rebounded but only commodities and the dollar are above their pre-invasion peak.

“With global central banks maintaining their hawkish stance and focus on inflation, the shorter duration, value pockets have led the rebound contributing to last week’s outperformance of European equities,” said London-based Goldman strategists led by Cecilia Mariotti.

Companies in focus
Other assets
  • The ICE U.S. Dollar Index DXY, -0.03%, a measure of the currency against a basket of six major rivals, was little changed.
  • Oil futures rose, with the U.S. benchmark CL.1, +0.62% up 0.7% near $111 a barrel, while gold futures GC00, -0.14% edged higher toward $1,931 an ounce.
  • Bitcoin BTCUSD, +4.15% rose 4.4% to trad near $42,900.
  • The Stoxx Europe 600 SXXP, +0.49% and London’s FTSE 100 UKX, +0.44% were up 0.4%.
  • The Shanghai Composite SHCOMP, +0.19% rose 0.2%, while the Hang Seng Index HSI, +3.15% jumped 3.1% in Hong Kong and Japan’s Nikkei 225 NIK, +1.48% gained 1.5%.

This article was originally published by Marketwatch.com. Read the original article here.

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