US stocks are expected to open higher on Monday, snapping last week’s downtrend. Nasdaq 100 futures slightly increased ahead of Fed’s Chair, Jerome Powell’s speech on Tuesday. Dow Jones Industrial Average futures as well as S&P 500 futures edged higher.
Nasdaq 100 Outlook
The Nasdaq 100 futures were up on Monday ahead of Powell’s speech on Tuesday. The index is expected to open higher later in the day. Financials and energy stocks have been gaining momentum. The US stocks are on a rebound after a week-long downward trend after Fed’s hawkish tone.
The Federal Reserve signaled two rate hikes in 2023, a year earlier than expected. This saw most stocks in the United States as well as long-term treasury yields decline. Investors are expecting a spike in June-quarter profits.
A rise in inflation would mean that the Fed would taper its monetary policy earlier than expected. According to St Louis Fed President, James Bullard, the Fed might tighten its monetary policy as early as next year. This is due to the strong economic growth in the US.
The US dollar jumped after the Fed’s announcement last week on Wednesday. However, the dollar lost momentum on Monday as the Fed signaled an earlier interest rate hike. The dollar index slipped 0.2% against six major currencies.
Investors are now eyeing Jerome Powell’s speech on Tuesday. He will be expected to brief the House of Representatives’ committee on the Fed’s emergency lending programs. He will also explain the Fed’s asset purchases programs.
Crude oil prices inched higher on Monday. The prices were boosted by a pause in Iranian nuclear talks which delayed the resumption of crude exports into the global market. US Crude went up by 0.3% while Brent rose by 0.2%.
Nasdaq 100 Movers
Raven Industries was the best performer in the Nasdaq 100 index. The company gained 49.24% in pre-market trading after the company accepted a $2.1 billion offer from a fellow agricultural equipment maker, CNH Industrial.
American Airlines gained 0.4% after the firm announced its plan to cut about 1% of its flights for the first half of July to reduce strains on its operations.
Tesla also performed in the pre-market after gaining more than 0.2%. This was after its former executive, Jerome Guillen, sold about $274 million in Tesla shares since June 10.
On the flipside, among the worst performers in the index were MicroStrategy and Coinbase. MicroStrategy lost about 7.34% in its stock prices in premarket trading. The company decline after a slip in bitcoin prices. The firm is among the biggest investors in bitcoin.
Coinbase slipped 3% in pre-market trading after a slump in bitcoin prices. Investors dropped out of the platform after China extended its restrictions on bitcoin mining.