Investing.com – U.S. stock futures rose on Tuesday, ahead of highly anticipated comments from Federal Reserve Chairman Jerome Powell, as well as comments from some hawkish Fed officials.
And before the Fed Chairman spoke today for the first time since Friday’s surprise jobs report caused traders to shift interest rate expectations.. The Fed’s hawks’ statements over the past hours supported a return to raising rates at a higher pace.
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Industrial index futures fell 0.1%, or 20 points.
Futures for the Nasdaq Technology Stock Index rose 40 points, or 0.3%.
Futures for the Standard & Poor’s 500 Index rose nearly 5 points, or 0.1%.
Gains fell to $4, or 0.25%, at $1882 levels
XAU/USD is up less than 0.2%, or $3, at $1870.5 levels.
The main shift to the green zone, up 0.1%, to reach 103.7 points.
The 10-year yield decreased to 3.63%.
Gains fell from more than 2.4% earlier today to less than 1.5% with the rise of the dollar and the return of oil flow through the Ceyhan line.
US Nymex light crude rose 1.55%, or the equivalent of $1.1, to levels of $75.2 a barrel.
It increased by 1.3%, with an increase of one dollar per barrel, reaching levels of $82, down from levels near $83.
What is driving the markets?
Minneapolis Federal Reserve Chairman Neel Kashkari said on Tuesday that the Fed will likely have to raise interest rates to at least 5.4% in order to tame .
This comes with the month of January showing that the measures did little to affect the labor market.
Kashkari said in an interview with CNB. CNN (CNBC): “I think it took us all by surprise,” referring to the explosive jobs report for January in which the US government reported more than half a million jobs.
“No one should overreact to a single report, but the underlying strength of the service sector in the economy remains very strong,” he continued.
“This is where I think a lot of us focus our attention is the appropriate interest target if I had to pick a number today,” Kashkari said.
An Atlanta chief said it may rise slightly more than expected in order to curb inflation in the wake of the strong January jobs report.
Investors’ speculation about the Federal Reserve continuing to raise interest rates intensified after a report showed that the economy added more jobs than expected in January, with the unemployment rate falling to a 53-year low.
Bostick added that the strong US labor market may mean that we have to do more work.. “I expect that this will translate into us raising interest rates more than I expected now,” he said.
David Rubinstein, co-chairman of private equity giant The Carlyle Group, will interview Powell at 12:40 PM ET at the Economic Club of Washington, DC.
“While Powell has remained mum on similar events in the past, Friday’s jobs release and the realignment of interest rate futures to expect a higher rate for longer may allow him to enjoy his win,” said David Stritch, currency analyst in Caxton, London.
Last week, the Labor Department reported a rise of 517,000 non-farm payrolls, as well as a drop in the unemployment rate to 3.4%.
Interest rate futures imply a final Fed rate of 5.157%, which according to Deutsche Bank was the first fresh hike since early November.