US: Stocks rise slightly ahead of Federal Reserve testimony

WALL Street stocks traded slightly higher on Monday, ahead of key jobs data and congressional testimony from Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average rose 0.1 per cent to 33,431.64, while the broad-based S&P 500 Index ticked up 0.1 per cent to 4,048.43.

But the Nasdaq Composite Index lost 0.1 per cent to 11,675.73.

The movements come as Fed Chair Powell is set for two days of testimony before Congress, on Tuesday and Wednesday, where he will be pressed about the central bank’s efforts to counter inflation.

This would provide hints on what policymakers are thinking about price pressures, influencing the market’s movements.

“I really think it’s just position-squaring ahead of Powell’s testimony,” said Karl Haeling of LBBW.

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US: Wall St opens higher as focus shifts to Powell’s testimony

But much of the key data that will inform the Fed’s next meeting will come after the hearings, including Friday’s government jobs report for February.

“This week will likely deliver a make-or-break moment for risk appetite as we will hear Fed Chair Powell’s testimony to Congress and find out if the hot January jobs report was an aberration,” said Edward Moya of trading platform Oanda.

“ Stocks probably won’t be able to have a meaningful rally until we hear from Fed Chair Powell,” he added in a note. AFP