US Stocks Set to Reach All-Time Highs Ahead of Powell’s Testimony-Fed Chair to Provide Insight on Interest Rates

“US Stocks Set to Reach New Highs Ahead of Powell’s Congressional Testimony”

Investors are eagerly anticipating Federal Reserve Chair Jerome Powell’s testimony to Congress today, as US stocks are poised to reach yet another all-time high. The S&P 500 closed 0.1% up in New York, marking its 35th record for the year, with the second-quarter reporting season about to kick off.

Futures on the S&P 500 edged higher, with contracts on the Nasdaq 100 also rising about 0.3%. The dollar hovered near a one-month low, while US Treasuries remained steady. Market expectations are currently pricing the chance of two rate cuts this year, with a 70% chance of the first cut in September.

Investors are particularly interested in Powell’s remarks on the timing of rate cuts, especially in light of recent signs of softer growth and labor market conditions. The markets will be closely watching for any hints of dovish sentiment from Powell, which could potentially lead to an increase in market pricing for a September rate cut and a further decline in the US dollar.

In other news, European markets saw a decline, with France’s CAC 40 underperforming amid concerns about increased government spending following a hung parliament in the weekend election. Individual stock movements in Europe included a more than 3% drop for BP Plc after announcing impairments in second-quarter results.

Meanwhile, Japanese stocks led gains in Asia, with semiconductor-related shares following the upward trend set by their US counterparts. The Nikkei 225 Stock Average climbed to a record, extending its advance for the year to over 24%. In commodities, oil steadied after recent losses, while gold and copper saw minor fluctuations.

Key events to watch this week include Jerome Powell’s testimony to the Senate Banking Committee, US Treasury Secretary Janet Yellen’s testimony, and earnings reports from major banks like Citigroup, JPMorgan, and Wells Fargo.

Overall, investors are keeping a close eye on Powell’s remarks and upcoming events this week as they navigate the current market conditions and economic outlook.