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U.S. stock benchmarks trade little changed to lower Tuesday morning, pausing for breath after the prior session’s intraday reversal as traders weigh rising rates. Markets will be tuned to Jerome Powell’s renomination hearing to continue as chairman of the Federal Reserve, as well as speeches from regional Fed presidents throughout the day, with an eye on Wednesday’s inflation data.
Powell is expected to win a second term but investors will be watching the Senate confirmation hearings for clues on his plans to curb out-of-control inflation.
In prepared testimony for Tuesday’s hearing, Powell said the Fed would use its tools “to prevent higher inflation from becoming entrenched.”
-
The Dow Jones Industrial Average
DJIA,
-0.73%
was trading 216 points, or 0.7%, lower at 35,843. -
The S&P 500 index
SPX,
-0.49%
was off 18 points, or 0.4%, at 4,652. The index was heading for a sixth straight decline, which would mark its longest such skid since a seven-session decline ended Feb. 28, 2020. -
The Nasdaq Composite Index
COMP,
-0.12%
was trading 35 points, or 0.3%, lower at 14,900.
On Monday, the Dow DJIA, -0.19% and S&P 500 SPX, -0.18% ended lower, while the Nasdaq Composite COMP, -0.43% closed fractionally higher. According to Dow Jones Markets Data, the Nasdaq’s reversal from a 2.7% slide earlier was the strongest intraday reversal since Feb. 28, 2020. The late-day reversal was driven by companies that had seen the worst year-to-date performance, according to Bespoke Investment Group.
Read: Fed’s George urges faster selloff of central bank’s $8.5 trillion balance sheet
