Stock futures flat after Powell says bigger upside is possible

Stock futures remained flat in overnight trading after Federal Reserve Chairman Jerome Powell said the central bank was open to higher rate hikes to combat rising l ‘inflation.

Dow Jones Industrial Average futures rose 10 points, while S&P 500 and Nasdaq 100 futures were flat.

Shares of Nike rose 6% in extended trading on Monday after the retailer reported a beating in third-quarter highs and lows, buoyed by strong demand in North America.

Monday’s trading session was volatile, with Powell pledging to take “necessary steps” to rein in inflation less than a week after the agency raised rates for the first time since 2018. Powell said said “inflation is way too high” and added that rates could rise further. than the 25 basis points previously approved if necessary.

In regular trading on Monday, the Dow Jones Industrial Average fell 201.94 points, or 0.6%, snapping a five-day winning streak. Meanwhile, the S&P 500 ended slightly lower after rising 0.4% during the session, while the Nasdaq Composite fell 0.4% to 13,838.46 after falling 1.5%. % at the low of the session.

“I’m pretty encouraged that the market has come back pretty well over the last hour of trading,” Ed Yardeni, president of Yardeni Research and chief investment strategist, told Monday’s “Closing Bell: Overtime.” CNBC.

“I think the market is looking for opportunities and the opportunities continue to be in areas like energy, commodities. I think the market will also find more opportunities in financials as interest rates are going up and the technology seems awfully cheap to me,” he added.

Meanwhile, oil prices rose again on Monday following news that the European Union is considering a ban on Russian oil. West Texas Intermediate and Brent Crude both rose about 7% to $112.12 and $115.62 a barrel. Amid the rally, energy stocks, including Occidental Petroleum and Marathon Oil, jumped 8% each.

Investors continued to monitor the situation in Eastern Europe on Monday as ongoing peace talks between Russia and Ukraine stalled and Ukraine refused to hand over the port city of Mariupol. to Russian forces. Market watchers are also watching the omicron sub-variant as it spreads across Europe with one of China’s worst Covid-19 outbreaks since 2020.

Buzzfeed is expected to release earnings before the bell on Tuesday, followed by Poshmark and Adobe after the bell.

Stock futures flat after Powell says bigger upside is possible

Source link Stock futures flat after Powell says bigger upside is possible

Back to top button