U.S. stock futures suggested a mostly flat open Tuesday, as investors opted for caution ahead of remarks from Federal Reserve Chair Jerome Powell scheduled later in the day.
Powell is set to speak at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon. His address follows last week’s Fed decision to cut interest rates by 25 basis points, which Powell described as a “risk management cut” amid early signs of labor market softness.
Markets broadly expect further quarter-point cuts at the Fed’s October and December meetings. Traders will be watching Powell closely for any guidance on the future path of rates, especially ahead of Friday’s key consumer price inflation readings.
After a soft start on Monday, equities recovered and finished the session mostly higher. Technology shares led the gains, with the Nasdaq climbing 157.50 points, or 0.7%, to 22,788.98, marking a new record close. The S&P 500 rose 29.39 points, or 0.4%, to 6,693.75, and the Dow added 66.27 points, or 0.1%, closing at 46,381.54.
Investors initially booked profits following the recent rally, but optimism about potential Fed rate cuts helped stabilize the market. Later this week, the Commerce Department will release the Fed’s preferred inflation gauge, which could influence expectations for future monetary policy.
Multiple Fed officials, including Powell, are expected to speak in the coming days, keeping markets focused on policy signals.
Meanwhile, traders largely brushed aside news that President Donald Trump signed a proclamation imposing a $100,000 fee on certain H-1B visa applicants. The White House said the move aims to “curb abuses that displace U.S. workers and undermine national security.”
Gold stocks saw strong gains as the metal hit a new record high, with the NYSE Arca Gold Bugs Index climbing 3%, reaching its highest close in more than thirteen years. Semiconductor and computer hardware stocks also rose, helping the tech-heavy Nasdaq extend its advance. On the downside, housing stocks weakened, with the Philadelphia Housing Sector Index falling 1.5% to a one-month low.
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