Surging US stock futures helped technology shares all stage a strong bounce on Wednesday, as investors anxiously awaited the next round of Federal Reserve Chair Jerome Powell’s testimony to the US Congress on economic stability and the prospect of interest rates.
Futures tracking the Nasdaq 100 (^NDX) climbed about 0.7 percent. Futures tracking the S&P 500 (^GSPC) added 0.4 percent, while Dow Jones Industrial Average (^DJI) contracts rose 0.2 percent.
Market participants were looking for Powell to tell Congress something that could give the stock market a boost off of further down days after Tuesday’s decline, fueled by concerns surrounding prominent tech giants like Apple (AAPL) and Tesla (TSLA). The recent volatility in these ”Magnificent Seven” stalwarts has raised apprehensions of a market bubble among investors.
Anticipation was high for Powell’s testimony as analysts looked for any sign that the Fed might be speeding up its changes in interest rates rather than, as it has been announcing for months, being in ‘no rush.’ Investors wanted to know the chances of a continued climb in borrowing costs and when it might come—especially with an election year upcoming.
The Federal Reserve Chair’s testimony was scheduled to be open to the public at 10 a.m. ET, followed by a hearing in the House following two years of intense economic performance and popular opinion.
The price of CrowdStrike’s shares (CRWD) in individual stocks jumped more than 23 percent in premarket trading, marching other cybersecurity stocks like Zscaler (ZS) higher. Zscaler’s stock increased nearly 4 percent in premarket trading.
Overall, with volatility now relatively high and rising concerns surrounding prominent tech companies, Powell’s testimony holds considerable weight in shaping investor sentiment and market trends in the near term.
Source: Karen Friar, Yahoo! Finance March 6, 2024
