In
his prepared remarks released late Monday afternoon, Powell said
inflation has "increased notably in recent months" but regarded
the recent jump, in fact, as likely to fade. The Fed chief is
due to speak before Congress at 2 p.m. ET (1800 GMT).
The Dow jumped more than 500 points on Monday following last
week's selloff, as the Fed's hawkish tone triggered a sharp
profit booking on the companies expected to benefit the most
from a U.S. economic revival and a move into tech-heavy growth
names.
"Powell will repeat that inflation is transitory and will drop
back 'as these transitory supply effects abate'," said Ipek
Ozkardeskaya, senior analyst at Swissquote Bank.
"How much time do we have before the supply effects abate is a
big question."
However, in a broad-based rally on Monday, the Dow logged its
best day since early March as market participants piled back
into energy, financials and industrial stocks.
At 6:31 a.m. ET, Dow e-minis were down 3 points, or 0.01%, S&P
500 e-minis were down 1.25 points, or 0.03%, and Nasdaq 100
e-minis were down 3.5 points, or 0.02%.
Heavyweights including Apple Inc, Amazon.com Inc and Alphabet
Inc dipped about 0.5% each.
"Meme stock" Torchlight Energy Resources Inc jumped 10.5% in
heavy premarket volume as the company upsized its stock offering
after its shares doubled in value last week on interest from
individual traders.
Crypto stocks including miners Riot Blockchain, Marathon Patent
Group, Ebang International and MicroStrategy Inc fell between 2%
and 3% as China's crackdown on bitcoin mining expanded to the
province of Sichuan.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing
by Maju Samuel)
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