US stocks were mixed on Tuesday in pre-market trading ahead of Jerome Powell’s testimony. Dow Jones Industrial Average futures were on a standstill as Nasdaq 100 futures increased. S&P 500 futures also increased slightly. US stocks closed in higher on Monday with the US dollar declining.
Dow Jones Concerns
The Dow Jones index closed in on a 1.76% high on Monday. The index gained 588 points. The US stocks are set to open the markets mixed ahead of Powell’s testimony.
Fed chair will be expected to brief US lawmakers on the central bank’s support for the economy. He will brief the congress on the Fed’s asset purchases and emergency lending programs.
Investors expect the Fed to point to a sustained economic improvement in the country. Employment numbers are also expected to increase in the upcoming months.
Powell stated that economic recovery is on the rise, but the pandemic is still a risk. Powell’s statement offset Bullard’s hawkish tone on an earlier than expected increase in monetary rates.
Powell reiterated the pressure in prices is not transitory and hence could decline. The inflation growth is expected to lessen over time.
Successful vaccination rollout as well as unprecedented monetary and fiscal policy actions have been a big boost to the country’s economy. However, there has been a slowdown in the vaccination rates which remains a threat to people’s health and the economy as well.
Crude oil prices spiked to record highs on Tuesday. US Crude rose 0.7% to $72.58 per barrel. Brent jumped above the $75 per barrel level for the first time since April 2019.
The US dollar consolidated on Tuesday after it slipped on Monday. The US dollar has been on an upward trend since the Fed’s announcement on Wednesday last week.
Stocks To Watch
The best performer in pre-market trading was GameStop. The company’s stock gained 8.41% in premarket trade. This was after the company announced the completion of its 5 million shares’ sale which amounted to $1.126 billion.
Sanderson Farms was also among the top performers in the pre-market trade. The company gained 6.46% in its stock earnings. This was after a report stated that the company was exploring a sale and had already drawn interest from suitors.
Korn Ferry gained 4.58% in the pre-market action. The company reported quarterly earnings of $1.21 per share surpassing the estimated forecast by 98 cents per share.
On the flipside, Microvision led the drags in pre-market trading. The company lost 9.82% in its stock earnings. This transpired after the company announced that it would sell $140 million of stock and use the funds for general commercial purposes.