Stock futures rise as Wall Street awaits Fed Chairman Powell’s speech

Stock futures rise as Wall Street awaits Fed Chairman Powell’s speech

Stock futures rose on Wednesday as Wall Street awaited a speech by Federal Reserve Chairman Jerome Powell.

Futures tied to the Dow Jones Industrial Average rose 38 points, or 0.14%. S&P 500 and Nasdaq 100 futures rose 0.2% and 0.4%, respectively.

Powell will deliver a speech at the Brookings Institution that could provide insight into the central bank’s thinking on future hikes. The Fed will meet later this month and is widely expected to deliver a smaller 0.5 percentage point rate hike after four consecutive 0.75 percentage point hikes to tame high inflation. A pause in interest rate hikes or a pivot is likely to boost markets.

“This is a recession created by the Fed, so eventually when it turns around, the market should move up pretty quickly,” Steve Grasso, CEO of Grasso Global, said on CNBC’s “Fast Money.”

Wall Street is coming out of a mixed session. The Nasdaq Composite fell 0.59% and the S&P 500 fell 0.16%, marking their third consecutive negative day. The Dow Jones Industrial Average posted marginal gains, closing 3.07 points, or 0.01%, higher.

Stocks have been weighed down by China’s zero-Covid policy and have failed to fully recover from losses even as the country announced steps toward reopening, such as increasing vaccination rates for the elderly.

On the data front, the ADP Private Payrolls report will be released on Wednesday, as will the latest Job Openings and Labor Turnover Survey for October. Pending home sales and the Fed’s Beige Book will also be released on Wednesday, which will provide additional clues about the state of the US economy.

Earnings season also continues, with Salesforce, Petco and Five Below all on deck.

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