Trading on the floor of the New York Stock Exchange.
U.S. stock futures opened slightly higher Monday night after the Dow Jones Industrial Average had its best day since March.
Dow Jones Industrial Futures rose 25 points or 0.07%. The S&P 500 and Nasdaq 100 futures rose 0.08% and 0.01%, respectively.
During the regular session, the Dow rose 586.89 points or 1
The indices recovered some of last week’s steep losses as the Federal Reserve’s updated inflation forecasts meant a sell-off. Commodity stocks such as Devon Energy and Occidental Petroleum led the market’s comeback on Monday after being hit hard last week. Norwegian Cruise Line and the Boeing stock rose more than 3% as the economy continues to reopen.
“The stock experienced a strong rebound on Monday, though all S&P did was repay its fall from Friday,” according to Adam Crisafulli, Vital Knowledge. “Cyclical stocks may have been recovered on Monday, but they are still in a downward trend and investors should use rallies to post profits.”
Federal Reserve Chairman Jerome Powell will testify before the House of Representatives on Tuesday about the central bank’s response to the pandemic. His remarks, released ahead of Monday night’s hearing, are likely to support the idea that the Fed is ready to begin talks soon on removing some of its unprecedented stimulus measures adopted during the pandemic.
“Since we last met, the economy has shown steady improvement,” Powell said Tuesday, according to the Fed announcement. Widespread vaccinations have joined unprecedented monetary and fiscal measures to provide strong support for recovery. Indicators of economic activity and employment continue to strengthen and real GDP this year looks set to catch up. fastest rate of increase in decades. “
“Inflation has risen, especially in recent months,” Powell said. But the Fed chief will note that most of these are a temporary effect and that inflation should fall back to 2% in the long run.
On Tuesday morning, the Federal Reserve Bank of Philadelphia releases its non-manufacturing business data, the National Association of Realtors publishes existing sales data for May through May, and the Federal Reserve Bank of Richmond publishes the results of its monthly survey of manufacturing activity.