Dow Jones Futures Fall After Market Rallies; Here Comes Fed Chief Powell | Investor’s Business Daily – Investor’s Business Daily
Dow Jones futures fell sharply early Wednesday, along with S&P 500 futures and Nasdaq futures, with recession fears rising with Fed chief Jerome Powell set to testify before Congress on Wednesday morning.
The stock market rally attempt had a strong session Tuesday. But it’s still a rally attempt within a bear market.
Cheniere Energy (LNG), Exxon Mobil (XOM), Eli Lilly (LLY), Dollar General (DG), Tesla (TSLA) rival Li Auto (LI), UnitedHealth (UNH) and Northrop Grumman (NOC) showed strong positive action, with relative strength lines at or near highs.
But few quality stocks are in position right now. That’s just one of many reasons to remain on the sidelines. While a rally attempt is underway, it’s not a confirmed uptrend yet.
Northrop stock and Eli Lilly are on IBD Leaderboard. Li Auto stock and Eli Lilly are on the IBD 50. LLY stock also is on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures fell 1.2% vs. fair value. S&P 500 futures lost 1.4% and Nasdaq 100 futures declined 1.5%.
The 10-year Treasury yield sank 10 basis points to 3.21%.
U.S. crude oil prices tumbled 5%. President Joe Biden on Wednesday called on Congress to suspend the federal gasoline tax of 18.4 cents per gallon for three months to provide some temporary relief at the pump.
Copper prices sank more than 3% to a 15-month low amid a strong dollar and weaker economic growth.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Fed Chief Powell Testifies
Fed chief Powell testifies on monetary policy before the Senate Banking Committee on Wednesday morning. Powell will appear before the House Financial Services Committee on Thursday.
It’s unclear if Powell will break new ground from last week. On June 15, the Federal Reserve hiked interest rates by 75 basis points, with the Fed chief saying either 50 basis points or 75 basis points is on the table for the late July policy meeting. Markets …….