VSCO - US Stock Futures Rise On Tech Strength While Bitcoin Gold Rallies Fizzle: All Eyes On Fed Chair Powell's Congressional Testimony | Benzinga
U.S. stocks are on track to rebound on Wednesday after experiencing a pullback in the previous two sessions. Pent-up buying could lift heavily weighted tech stocks and, consequently, the broader market. However, several factors will influence the market’s direction.
Investors will closely watch Federal Reserve Chair Jerome Powell‘s comments on inflation and potential monetary policy adjustments in a testimony to the House of Representatives. While a significant shift in stance is unlikely, any deviation from his recent hawkish tone could impact markets.
Upcoming data releases on the job market could offer insights into the economy’s health and potentially influence the Fed’s monetary policy decisions.
While the Super Tuesday primary results largely met expectations and may not significantly alter Wednesday’s market outlook, they remain a potential factor to watch.
Some portfolio managers view the recent pullback as a positive development. “As much as profit-taking when at all-time highs is rational, the huge amount of the money on the sidelines likely has been waiting for a pullback to add to their exposure,” said Louis Navellier.
Cues From Tuesday’s Session:
Dragged by weakness in most mega-tap tech stocks, the major averages fell sharply on Tuesday. The setback came amid nervousness about the overbought levels, especially as traders looked ahead to some key Main Street catalysts.
The major indices opened lower and languished below the unchanged line throughout the session. While the S&P 500 Index and the Dow Jones Industrial Average settled at two-week lows, the Nasdaq Composite pulled back toward its lowest in a week.
Among S&P sector classes, IT stocks experienced the biggest declines followed by consumer discretionary, real estate and communication services stocks. On the other hand, consumer staple, energy and financial stocks rose modestly.
Economic data released on Tuesday vouched for the softening of economic conditions. The Institute of Supply Management’s non-manufacturing survey showed a smaller-than-expected expansion for February. The pricing component of the survey also showed tamer ...