Investing.com – U.S. stock futures are rising as markets prepare for Federal Reserve Chairman Jerome Powell’s highly anticipated speech to lawmakers on Capitol Hill. is recouping losses after the world’s most popular cryptocurrency hit a new all-time high. A repeat of the 2020 US presidential election appears even more likely after President Joe Biden and Donald Trump scored big victories in the Super Tuesday primary elections.
1. Futures are an inch higher
U.S. stock futures were subdued on Wednesday as investors awaited the first of two days of key testimony from Federal Reserve Chairman Jerome Powell and a fresh round of economic data.
By 03:25 ET (0825 GMT) it was up 12 points or 0.2%, gaining 90 points or 0.5% and gaining 51 points or 0.1%.
Major indexes closed in the red on Tuesday as Apple (NASDAQ:) shares fell after a research report found sales of the tech giant’s flagship iPhone fell 24% in the first six weeks of 2024. Chip stocks also came under pressure after Bloomberg News reported that U.S. officials had put a brake on Advanced Micro Devices’ (NASDAQ:) plans to sell a processor intended for the Chinese market.
Strategists also say there has been some profit-taking following the recent rally on Wall Street. At the close, the index fell 1.0%, with tech companies down 1.7% and blue chip stocks down 1.0%.
2. Fed’s Powell will testify
Jerome Powell is expected to maintain a hawkish stance during his appearances before lawmakers on Wednesday and Thursday.
The Fed chairman’s attack on Capitol Hill came as several central bank officials said they were in no rush to cut interest rates from more than two-decade highs due to persistent inflation. US price growth has slowed markedly since 2022, but remains above the Fed’s stated 2% target.
Recent data also points to the relative strength of the US economy, giving the Fed more room to keep rates high for a long time. New labor market data, including jobs data due later today and the February nonfarm payrolls report on Friday, should provide further signals on this front.
Having started 2024 with hopes that the Fed would cut rates early in the year, markets are now widely predicting that policymakers won’t start cutting rates by 25 basis points until June.
3. Bitcoin compensates for losses
Bitcoin pared back most of its losses in early European trading on Wednesday, remaining within sight of a record high as steady capital inflows into U.S. spot exchange-traded funds and anticipation of a halving event kept buyers in the game.
The world’s largest cryptocurrency was trading up 1.5% at $67,229.5 by 3:26 a.m. ET after hitting a record high of $69,063 on Tuesday, according to Investing.com. The token fell almost immediately after peaking, falling as low as $59,000 before recouping its losses.
Consistent capital inflows into spot ETFs that track the price of Bitcoin have supported the digital asset recently. Investors are also anticipating an upcoming “halving” event, which will see the rate at which new Bitcoins are generated cut in half, limiting new supply.
Elsewhere, gold prices also eased after rising to record highs, a sign traders may be looking for a safe haven as the risk of a stock market correction increases.
by 3:28 a.m. ET fell 0.1% to $2,126.88 an ounce, and April maturities fell 0.3% to $2,134.75 an ounce. Spot gold hit a record high of $2,142.15 an ounce and gold futures peaked at $2,150.50 an ounce on Tuesday.
4. Biden and Trump dominate Super Tuesday elections
US President Joe Biden and his predecessor Donald Trump both won a number of states holding party primaries on Super Tuesday, all but securing a rematch in this year’s race for the White House.
Trump notably secured victories in the delegate-rich states of California and Texas, pressuring Nikki Haley, his leading contender for the Republican nomination, to abandon her bid. According to the Associated Press, Haley won only one state, Vermont.
Biden, meanwhile, only lost the Democratic caucus in American Samoa, a small U.S. territory in the South Pacific.
While the results made a repeat of the 2020 presidential campaign all but certain, many voters expressed concerns about both the ages and the broad popularity of Biden, 81, and Trump, 77.
5. Oil prices have stabilized
Oil prices held above flat in European trade on Wednesday as sustained OPEC+ production cuts and a slight de-escalation in the war between Israel and Hamas foreshadowed tighter supplies and countered persistent concerns about slowing demand.
Prices fell sharply from the previous session after top importer China announced largely disappointing economic growth targets for 2024, potentially signaling weak oil demand in the country. However, the decline was softened by some signs of tightening supplies. Ceasefire talks between Israel and Hamas made no progress this week, indicating ongoing potential disruptions to oil supplies from the Middle East.
A smaller-than-expected rise in U.S. oil inventories also helped limit losses, along with a decision by the Organization of the Petroleum Exporting Countries and its allies to maintain the current pace of production cuts through the end of June.
The May expiration price rose 0.4% to $82.33 a barrel and was up 0.4% to $77.68 a barrel by 3:29 a.m. ET. Both contracts fell about 1% each on Tuesday.