U.S. stock futures on Thursday point to a drop at the open, as traders waited for a fresh appearance before Congress by Federal Reserve chief Jerome Powell.
What are the main benchmarks doing?
Dow Jones Industrial Average futures YMH8, -0.17% fell by 73 points, or 0.3%, to 24,965, while S&P 500 futures ESH8, -0.12% shed 6.40 points, or 0.2%, to 2,708. Nasdaq-100 futures NQH8, -0.05% gave up 9.75 points, or 0.1%, to 6,855.25.
On Wednesday, the Dow DJIA, -1.50% closed lower by 381 points, or 1.5%, while the S&P 500 SPX, -1.11% shed 1.1%, and the Nasdaq Composite COMP, -0.78% slumped 0.8%. The Dow gave up 4.3% in February, notching its biggest monthly drop in more than two years and paring its advance over the past 12 months to 20%.
What are strategists saying?
“The directional cue for markets today will be Fedspeak (Powell and Dudley),” said RBC foreign-exchange strategist Sue Trinh in a note.
She was referring to the Fed chairman’s appearance and to a speech in Brazil by New York Fed President Dudley that’s scheduled for 11 a.m. Eastern Time.
Powell, whose comments Tuesday before a House panel helped send U.S. stocks lower, is due to testify to the Senate Banking Committee at 10 a.m. Eastern.
The new Fed boss on Tuesday highlighted ways that he personally thinks the U.S. economic outlook has strengthened. His comments helped spark a rally for the dollar and Treasury yields, as well as the selloff for equities.
Opinion: Powell’s first faux pas came quick