Breaking News: U.S. Stock Futures Rise as Investors Await Powell's Testimony | Tech and Semiconductor Stocks Lead the Rally
In today's financial market news, U.S. stock index futures are on the rise, with megacap technology and semiconductor stocks poised to continue Monday's rally. Investors are eagerly awaiting Federal Reserve chair Jerome Powell's testimony for insights into future monetary policy decisions.
The S&P 500 and Nasdaq closed at record highs on Monday, driven by a surge in chip stocks. Intel shares jumped 3.8% in premarket trading, while Nvidia and Marvell Technology also saw gains. Powell's testimony, scheduled for 10 a.m. ET, will be closely watched for clues on how the central bank views recent economic data indicating a slowdown.
Analysts expect Powell's comments to be either balanced or slightly dovish, given signs of economic weakness. Market expectations for rate cuts have increased, with a 74% chance of a 25 basis point cut at the Fed's September meeting. Rate-sensitive megacap stocks like Microsoft, Amazon.com, Alphabet, and Meta Platforms were also up.
Inflation data due later this week will provide further insight into the economy, along with the start of the second-quarter earnings season. Analysts predict a 10.1% increase in S&P 500 companies' earnings per share for the quarter.
At 5:53 a.m. ET, Dow futures were up 47 points, S&P 500 futures were up 13.75 points, and Nasdaq futures were up 83.25 points. Single movers include Tempus AI, which rose 3.9% after receiving an overweight rating from J.P. Morgan, and Eli Lilly, which gained 0.7% on positive data for its obesity treatment.
Overall, the market is on a bull run with the possibility of rate cuts in the future. Investors should pay attention to Powell's testimony, inflation data, and earnings reports to make informed decisions about their portfolios. Stay tuned for more updates on the financial markets and how they can impact your investments.