US equity futures were largely flat on Tuesday night as investors looked to see if an end-of-day swing in the market continues on Wednesday.
Futures for the Dow Jones Industrial Average and S&P 500 moved closer to the flat line, while those linked to the Nasdaq 100 slipped 0.1%.
The movement of futures follows a wild return during Tuesday market hours which saw the Dow and the S&P 500 erase strong losses to finish slightly higher. The positive arrival broke a five-day skid for the S&P 500. The Nasdaq Composite, which was down nearly 4% at point, ended with a loss of just 0.5%.
The rebound began after Federal Reserve Chairman Jerome Powell released his prepared remarks for a hearing with the Senate Banking Committee, with the central bank chief saying inflation was “soft” and the American economy was “.far from our employment and inflation targets“Bond yields have recovered in recent weeks, fueling fears that the Fed may change its accommodative policy.
Marci McGregor, senior investment strategist at Bank of America Merrill Lynch, said on “Closing bell“Market sentiment indicated a necessary pullback, but the general pattern of equities remained positive.
“We are still in the benefit of further economic expansion. Our view is that we are in a long term secular bull market,” McGregor said. “We heard from Jay Powell today, and it looks like he’s still got his foot on the accelerator.”
The general market rebound on Tuesday was reflected in the tech giant’s moves Apple and fleet of electric vehicles You’re here, which finished with losses of 0.1% and 2.2%, respectively, after suffering much larger losses earlier in the day. Energy and Financials stocks outperformed, while tech and consumer discretionary sectors lagged the broader market.
Bitcoin also struggled on Tuesday, falling below the $ 50,000 level.
Powell’s visit to Capitol Hill will continue on Wednesday when he addresses the House of Representatives Financial Services Committee. Investors will also get another look at the construction industry with data on new home sales and a earnings report from Lowe’s.