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The
three main U.S. stock indexes rallied on Friday and notched
weekly gains as Treasury yields pulled back from their peaks
after comments from Fed policymakers calmed jitters over
aggressive rate hikes.
The yield on U.S. 10-year Treasury notes slipped to 3.92%, its
lowest since March 1, while the two-year yield inched down to
4.85% after touching its highest since 2007 last week. [US/]
Powell will be testifying before Congress on Tuesday and
Wednesday and investors will watch for clues on the policy
outlook, after recent strong economic data and hot inflation
numbers fueled bets for more interest rate hikes this year.
"Looking at the latest set of data, the U-turn of easing
inflation and last month's blowout jobs figures, we don't expect
to hear anything less than hawkish from Mr. Powell," said Ipek
Ozkardeskaya, senior analyst at Swissquote Bank.
"But it's always possible that a word like 'disinflation' slips
out of his mouth, and that we get a boost on risk."
Traders expect at least three 25-basis-point hikes this year and
see interest rates peaking at 5.44% by September from 4.67% now.
Investors also eyed factory orders data for January, due at 1000
a.m. EST, to assess the impact of higher interest rates on the
manufacturing sector.
At 06:52 a.m. ET, Dow e-minis were down 48 points, or 0.14%, S&P
500 e-minis were down 5.5 points, or 0.14%, and Nasdaq 100
e-minis were down 12.75 points, or 0.1%.
Shares of Apple Inc climbed 0.9% in premarket trading after
Goldman Sachs initiated coverage on the iPhone maker with a
"buy" rating.
U.S.-listed shares of Chinese companies Alibaba and PDD Holdings
fell 0.9% and 1.2%, respectively, after China set a modest
annual economic growth target of about 5%, below market
expectations of 5.5%-plus growth.
Shares of cryptocurrency-related companies fell after Silvergate
Capital Corp pulled the plug on its crypto payments network,
after raising doubts on the company's ability to stay in
business. The California-based bank slid 4.9%, while peer
Signature Bank declined 2.1%.
(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in
BengaluruEditing by Vinay Dwivedi)
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