U.S. stock futures point higher after the Nasdaq’s historic intraday reversal

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US stock futures pointed higher on Tuesday, gathering steam after the prior session’s intraday reversal, as traders weighed rising interest rates on expectations of rising corporate earnings.

What is happening
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On Monday, the Dow Jones Industrial Average (DJIA),
-0.45%
The S&P 500 SPX closed down 163 points, or 0.5%, at 36069.
-0.14%
Only 0.1% less and Nasdaq Composite comp,
+0.05%
More partially closed.

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Nasdaq’s reversal from an earlier 2.7% decline was the strongest intraday reversal since February 28, 2020, according to Dow Jones Markets data. The reversal of late was driven by companies that saw their worst year-on-year performance. For the Bespoke Investment Group.

what is driving the market

Markets will be watching for speeches from regional Fed chairmen throughout the day, keeping an eye on Wednesday’s inflation data, along with hearings for Jerome Powell’s nomination to continue as Federal Reserve chairman.

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Powell is widely expected to be confirmed by the Senate for a second term leading the Fed.

Minutes of the December Federal Open Market Committee meeting, released last week, showed the central bank showing interest in several rate hikes this year and shrinking its nearly $9 trillion balance sheet, which is still rising as the previous quantitative easing program ends. It is done.

Yield on 10 Year Treasury TMUBMUSD10Y,
1.760%
Ended at the highest level since January 17, 2020 on Monday. The 10-year yield has risen 28 basis points this year.

“We expect the market to move the Fed’s terminal rate to something more like 1.75% to 2.25%, as growth and inflation exceed the Fed’s target. This is likely indicative of a 10-year Treasury yield of 1.85-2.00%. Will,” said Brad Tank, chief investment officer – fixed income at Neuberger Berman.

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