US stock futures dip ahead of Powell testimony and inflation data, sparking rate cut speculation.

From Investing.com: 2024-07-07 20:02:54

U.S. stock index futures dipped slightly ahead of Powell’s testimony and key inflation data. Last week’s surge in markets raised hopes of a rate cut by September. The S&P lost 0.1% to 5,615.25, the Nasdaq dropped 0.1% to 20,604.25, and the Dow declined 0.1% to 39,647.0 points.

Federal Reserve Chair Jerome Powell is set to testify before Congress, focusing on monetary policy. Despite progress in inflation, the Fed remains cautious about cutting rates. Weaker labor data increased expectations for a rate cut, with inflation data this week likely influencing the decision.

Wall Street hit record highs on rate cut speculation, with investors favoring technology stocks. The S&P rose 0.5% to 5,567.19 points, the Nasdaq increased 0.9% to 18,351.34 points, and the Dow edged up 0.2% to 39,375.87 points. Traders now see a 72% chance of a rate cut in September.

Second-quarter earnings season begins this week, with bank heavyweights like JPMorgan Chase, Wells Fargo, and Citigroup reporting on Friday. Markets are eager to see how corporate earnings fared amid interest rate pressure and inflation concerns.



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