Traders on the NYSE, March 17, 2022.
Brendan McDermid | Reuters
U.S. stock futures were little changed in overnight trading on Tuesday as investors continued to review revelations from the Federal Reserve on inflation and interest rates.
The Dow Jones index rose 30 points. S&P 500 futures rose 0.1% and Nasdaq 100 futures were flat.
Above TuesdayMajor averages rose as investors assessed recent comments from Federal Reserve Chief Jerome Powell. Last week, the Fed raised interest rates for the first time since 2018 and forecast plans to raise rates by a quarter at each of the remaining six meetings of 2022.
But then Powell appeared for more rhetoric on Monday, when he promised to take tough action on inflation.
“The labor market is very strong and inflation is too high,” the central bank chief told the National Association of Business Economics. “If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will.”
The Dow Jones Industrial Average rose more than 250 points on Tuesday, giving it a 2.2% gain Nike’s stocks from high income. The S&P 500 rose 1.1%.
Nasdaq Composite is a relatively better index, up 2% when Meta . Platform, Amazon, Apple, Netflix and Google-parent Alphabet all closed higher.
The yield on the benchmark 10-year US Treasury note on Tuesday hit 2.39% at the highest level of the session, the highest since May 2019.
Jim Paulsen, investment strategist at Leuthold Group, said: “Investors’ attitudes are being bolstered by the fact that the stock market doesn’t appear to be concerned about higher bond yields or the Federal Reserve becomes more and more hawkish.”
The S&P 500 is down just 5% from its record and has surpassed both its 50-day and 200-day moving averages.
However, the famous activist investor Carl Icahn said on Tuesday a recession could be are coming.
“I think there’s a good chance there’s a recession or even worse,” Icahn, founder and president of Icahn Enterprises, said on CNBC.Closing bell Out of hours“for Scott Wapner.
On the economic front, new home sales data from February will be released at 10 a.m. Wednesday.
Generals Mills, Cintas and Tencent Holdings will report quarterly earnings before the bell on Wednesday. KB Home alarms after the bell.
