US stocks rise ahead of testimony from Fed Chair Powell
Stocks are rising on Wall Street as traders wait for more clues on the Federal Reserve’s thinking on inflation
TOKYO — Stocks are rising on Wall Street Tuesday as traders wait for more clues on the Federal Reserve’s thinking on inflation.
The S&P 500 index rose 0.3% as of 11:37 a.m. Eastern. The Dow Jones Industrial Average rose 24 points, or 0.1%, to 33,905 and the Nasdaq rose 0.4%.
Technology companies were the biggest gainers. A mix of companies that rely on direct consumer spending, including Home Depot and Best Buy, were also making solid gains.
Stocks rebounded on Wall Street Monday, clawing back most of their sharp loss from last week, as the initial jolt passes from the Federal Reserve’s reminder that it will eventually offer less help for markets.
The S&P 500 snapped 58.34 points higher, or 1.4%, to 4,224.79 and recovered nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.
Fed Chair Jerome Powell will testify before Congress later Tuesday on the central bank’s response to the coronavirus pandemic. Investors remain focused on the issue of inflation and will be listening closely to Powell’s comments on this issue. The U.S. economy is recovering from the pandemic quickly as vaccines have rolled out, but it’s caused prices for basic materials to rise noticeably in recent months.
In prepared remarks, Powell reaffirmed the Fed’s position that while inflation has accelerated recently, the Fed expect the effects to be transitory.
Powell’s remarks follow a meeting of the Fed policymakers last week, when central bank officials signaled they were prepared to raise rates earlier than they had previously suggested.
Bond prices didn’t move much. The yield on the 10-year Treasury note edged up to 1.49%.
GameStop rose 6.4% after the company announced it had raised $1 billion in selling new shares to investors.
The price of Bitcoin continued to fall, adding to its losses from the previous couple of weeks. The digital currency is trading under $30,000, according to Coindesk, about where it started the year. It traded above $60,000 in mid-April.
