U.S. stock futures fluctuated on Tuesday morning ahead of a scheduled speaking appearance by Federal Reserve Chair Jerome Powell. In an interview with billionaire Carlyle Group co-founder David Rubenstein, Powell is expected to deliver his outlook on the ongoing inflation issue and the Federal Reserve’s potential policy movements.
Futures on the S&P 500 gained 0.1% during the early hours of Tuesday, while those on the Dow Jones Industrial Average slipped by around 0.1%. Contracts on the Nasdaq Composite Index declined by 0.2%.
Investors are expecting Powell to express caution against becoming too confident that inflation is down for good, particularly after the Federal Reserve reduced the margin of its last interest rate hike. Furthermore, payrolls grew by 517,000 in January, thereby fuelling confidence on the employment front.
“If the Fed are unhappy with how the market interpreted last week’s meeting, then this is the opportunity for them to try and address things,” Quant Insight head of analytics Huw Roberts declared. “This will be a critical speech. Even if he’s says nothing of interest, that’s important. More benign neglect from Powell will be interpreted as a green light for risky assets to keep rallying.”
