Title: Nasdaq Futures Up 75 Pts; Powell Testimony in Focus
Jan 11, 2022 06:54AM ET
US equity markets opened higher on Tuesday, continuing the late surge from the previous session ahead of Fed Chairman Jerome Powell's confirmation.
At 7 a.m. ET (1200 GMT), the Dow futures contract was up 80 points, or 0.2%, the S&P 500 futures contract was up 17 points, or 0.4%, and the Nasdaq 100 futures contract was up 75 points, or 0.5%.
Wall Street's major indices recouped some of their losses on Monday after opening sharply lower on concerns about rising interest rates. The technology-heavy Nasdaq Composite even closed higher.
Positive sentiment is expected to continue on Tuesday as investors await Federal Reserve Chairman Jerome Powell's appearance before the Senate Banking Committee.
In his opening remarks to the hearing, released ahead of time, Powell promised to prevent high inflation from "taking hold" but gave no indication of the timing or pace of the central bank's monetary tightening.
At this point, Powell will most likely be asked how many rate hikes will be needed this year. Atlanta Fed President Raphael Bostic, who was one of the more dismissive voices at the central bank late last year, told the Wall Street Journal that he expected only three rate hikes but that there was a risk that a fourth might be needed.
The main economic data release on Tuesday is the Redbook index, an indicator of retail sales growth, but investors will be fully focused on consumer price inflation data on Wednesday. The consumer price index is expected to rise above 7% year-on-year, approaching a four-year high.
In corporate news, Tesla will be in focus after data from the China Passenger Car Association showed the US electric vehicle maker sold 70,847 vehicles manufactured in China in December, the highest monthly rate since production began in Shanghai in 2019.