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Stock Market Recap: Futures Flat, Powell Testimony in Focus
Stock futures hovered near the flatline in overnight trading after the major averages posted their first winning session in three days and Wall Street looked ahead to Federal Reserve Chair Jerome Powell’s second day of testimony on Capitol Hill. Futures tied to the Dow Jones Industrial Average added less than 10 points, while S&P 500 futures and Nasdaq-100 futures were little changed. In extended trading, Victoria’s Secret plunged more than 25% after posting mixed quarterly results and issuing disappointing guidance.
All major averages finished higher Wednesday following back-to-back losing sessions. The S&P 500 rose 0.51%, while the Nasdaq Composite added about 0.6%. The Dow Jones Industrial Average gained nearly 76 points, or 0.2%. Nine of the 11 major S&P sectors finished higher, led to the upside by utilities. At one point, New York Community Bancorp tumbled more than 40% during Wednesday’s session, but it finished with a 7.5% gain after announcing a $1 billion capital raise. Apple fell for a sixth consecutive day, bringing its weekly losses to nearly 6%.
Investors monitored the first of Fed Chair Powell’s appearances on Capitol Hill this week for more insight on the path ahead for interest rate cuts. During Wednesday’s testimony before the House Financial Services Committee, the central bank chair indicated that the policy rate is at its “peak for this tightening cycle,” but reinforced that the Fed is not ready to begin reducing rates. “The market digested the reality that Powell was on board with respect to cutting rates this year. The question now becomes when, how often and how many cuts,” said Adam Sarhan, CEO of 50 Park Investments.
In addition to Powell’s remarks before the Senate Banking Committee on Thursday, Wall Street is also on the lookout for the latest jobless claims data, and trade balance and consumer credit data for January. This comes ahead of February’s closely watched jobs report slated for Friday. Earnings from Broadcom, Costco Wholesale, and Kroger are also on deck.
Overall, the stock market continues to be influenced by a mix of economic data, corporate earnings, and central bank policy. Investors are closely watching for any signals from Powell regarding potential interest rate cuts and how they could impact the market.
The recent volatility in the market has been driven by concerns around global trade tensions, slowing economic growth, and geopolitical uncertainty. As a result, investors are turning to key events like Powell’s testimony to gain a better understanding of the current economic landscape and potential risks on the horizon.
With the Federal Reserve closely monitoring economic indicators and market conditions, investors are eager to see how the central bank will navigate potential challenges in the coming months. Powell’s testimony is seen as a crucial opportunity for investors to gain insights into the Fed’s outlook and potential policy actions in response to changing market conditions.
In conclusion, while the stock market may experience ups and downs in the short term, it is important for investors to focus on the broader economic trends and long-term investment strategies. Powell’s testimony and other key events will continue to shape market sentiment and impact investor decisions in the weeks ahead.
