US open: Stocks trade lower as Powell delivers testimony
By Iain Gilbert
Date: Wednesday 12 Jan 2022
(Sharecast News) - Wall Street stocks were in the red early on Tuesday as market participants digested testimony from Federal Reserve chairman Jerome Powell on Capitol Hill.
As of 1500 GMT, the Dow Jones Industrial Average was down 0.56% at 35,867.30, while the S&P 500 was 0.39% weaker at 4,652.15 and the Nasdaq Composite came out the gate 0.11% softer at 14,926.97.
The Dow opened 201.57 points lower on Tuesday, extending losses recorded in the previous session.
Tuesday's primary focus will be Federal Reserve chairman Jerome Powell's confirmation hearing on Capitol Hill, where he told the Senate Banking Committee that the post-pandemic economy was likely to be "different in some respects".
"The pursuit of our goals will need to take these differences into account. To that end, monetary policy must take a broad and forward-looking view, keeping pace with an ever-evolving economy," said Powell.
Also from the central bank, Kansas City Fed president Esther George said the central bank should soon begin to reduce holdings of US Treasury bonds and mortgage-backed securities accumulated during the Covid-19 pandemic.
"My own preference would be to opt for running down the balance sheet earlier rather than later as we plot a path for removing monetary accommodation," said George.
Elsewhere, the yield on the benchmark 10-year Treasury yield was roughly 1.765% early on Tuesday morning.
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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