US pre-open: Stocks in the green ahead of Powell testimony
By Iain Gilbert
Date: Wednesday 12 Jan 2022
(Sharecast News) - Wall Street futures were in the green ahead of the bell on Tuesday as market participants awaited testimony from Federal Reserve chairman Jerome Powell on Capitol Hill.
As of 1150 GMT, Dow Jones futures were up 0.25%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.37% and 0.53% firmer, respectively.
The Dow closed 162.79 points lower on Monday, while the Nasdaq managed to snap a four-day losing streak.
Tuesday's primary focus will be Federal Reserve chairman Jerome Powell's confirmation hearing on Capitol Hill at 1500 GMT, where he will tell the Senate Banking Committee that the central bank will prevent higher inflation from becoming entrenched but also warn that the US economy's post-pandemic recovery may appear to be different than the previous expansion.
Members of the Senate were expected to challenge Powell on the timing of the Federal Reserve's first interest rate hike and inquire as to whether or not it should've acted sooner to try subdue inflation.
Powell will try to assure lawmakers that the Fed was capable of getting inflation under control while also doing his best not to scare investors into thinking that it will not act too aggressively and potentially trigger a recession.
Also from the central bank, Kansas City Fed president Esther George speak on economic policy at 1430 GMT.
On the macro front, the National Federation of Independent Business' small business optimism index rose modestly in December, increasing 0.5 points to 98.9 despite growing concerns about inflation and worker shortages.
No major corporate earnings were slated for release on Tuesday.
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