Fed Chairman Powell will testify on the economy Tuesday
U.S. equity markets picked up momentum Monday afternoon as the Dow Jones Industrial Average roared higher now and was on track to snap its five-day losing streak and bounce back from its worst week since October.
|I:DJI||DOW JONES AVERAGES||33865.74||+575.66||+1.73%|
|I:COMP||NASDAQ COMPOSITE INDEX||14132.752066||+102.38||+0.73%|
The Dow rose over 500 points, or 1.5%, while the S&P 500 advanced 1.1% and the Nasdaq Composite gained 0.7%. The rally comes after St. Louis Fed President James Bullard roiled markets on Friday when he suggested a rate hike could occur in 2022 – ahead of the Fed’s 2023 target. On Monday, he followed up in separate remarks, saying an uptick in inflation remains a risk for the economy.
Investors are now looking ahead to Federal Reserve Chairman Jerome Powell’s Tuesday testimony on lessons learned from the central bank’s response to the coronavirus pandemic to see if he provides further clarity on the rate-hike path.
In stocks, energy names were the strongest performers in the S&P 500, while Chevron added to the Dow’s gains.