© Reuters. FILE PHOTO: US Federal Reserve Chairman Jerome Powell addresses reporters after the Fed raised its target interest rate by a quarter of a percentage point, during a news conference at the building of the Federal Reserve in Washington, USA, on February 1, 2023. REUT
(Reuters) – U.S. stock index futures rose on Tuesday, ahead of a speech by Federal Reserve Chairman Jerome Powell later in the day that will be scrutinized for more clues about how long the bank will Central will keep interest rates high.
Powell’s speech, scheduled for 12:40 pm EST (1740 GMT) to the Economic Club of Washington, will be closely watched after a strong jobs report last week dashed rising hopes of a lesser monetary policy. aggressive.
“In theory, a stronger labor market makes it less likely that the Federal Reserve will stop interest rate hikes any time soon,” said Russ Mold, chief investment officer at AJ Bell.
“The Fed needs to see both the labor market and inflation start to cool before it can justify changing its rate stance.”
It rose the most among futures that track the three main Wall Street indexes.
Heavyweight microsoft corporation (NASDAQ:) was up 0.9% in premarket trading. It is expected to reveal its investment in chatbot sensation ChatGPT later in the day.
Boeing (NYSE:) Inc rose 1.1% after the US planemaker confirmed on Monday that it expects to eliminate some 2,000 white-collar jobs through attrition and layoffs.
Expectations of high rates over a prolonged period dragged the main Wall Street indexes lower on Monday. But, all three major averages are in the black for 2023, with the Nasdaq adding 13.6%, led by a revival in battered mega-cap growth stocks.
royal caribbean (NYSE:) Cruises is scheduled to report fourth-quarter results before the opening bell, while Chipotle Mexican Grill Inc. (NYSE:) reports after the close.
So far, 254 companies have reported quarterly earnings, and 69.3% of them beat expectations, according to Refinitiv. Still, analysts expect fourth-quarter earnings to decline 2.8%.
At 5:45 am ET, they were up 4 points, or 0.01%, up 5.25 points, or 0.13%, and e-minis were up 34 points, or 0.27%.
Bed Bath & Beyond (NASDAQ:) plunged 31.7% premarket as the embattled home goods retailer seeks a $1 billion raise in a last-ditch effort to avoid bankruptcy.
(This story has been corrected to change the time to 1740 GMT from 0540 GMT in paragraph 2)
