US stock futures edge higher as Powell testimony looms

Investing.com-- U.S. stock index futures rose in evening deals on Monday as increased expectations for a September rate cut kept Wall Street buoyant before testimony from Federal Reserve Chair Jerome Powell and inflation data later this week. 

Wall Street indexes eked out record highs during the session, with heavyweight technology and chipmaking stocks rising the most. This trend extended into aftermarket trade.

S&P 500 Futures rose 0.2% to 5,634.25 points, while Nasdaq 100 Futures rose 0.3% to 20,714.50 points. Dow Jones Futures rose 0.1% to 39,696.0 points by 19:13 ET (23:13 GMT).

Powell testimony, CPI data on tap 

Powell is set to offer a two-day testimony before the Senate and the House, starting Tuesday. 

The Fed Chair is expected to offer more cues on monetary policy, with markets watching for any dovish signals, especially in the wake of softer inflation and labor data in recent weeks. 

Beyond Powell’s testimony, several other Fed officials are also set to speak this week, including open markets committee members Michelle Bowman and Raphael Bostic.

Investors will also be looking to key consumer price index inflation data for June, which is due on Thursday, for more cues on the path of inflation. The Fed has repeatedly signaled that it needs more confidence that inflation is easing, before it can begin cutting interest rates.

Wall Street buoyed by rate cut bets 

The S&P 500 and the Nasdaq Composite eked out record highs on Monday, extending recent gains as traders priced in a greater chance the Fed will begin cutting interest rates from September. This came following a slew of weak labor market readings last week, especially with softer-than-expected nonfarm payrolls on Friday.

The CME Fedwatch tool showed traders pricing in an over 70% chance for a 25 basis point cut in September, up from last week’s 59%. 

U.S. stock indexes also remained largely supported by heavyweight technology and chipmaking stocks, amid persistent hype over artificial intelligence. 

The S&P 500 rose 0.1% to 5,572.85 points, while the NASDAQ Composite rose 0.3% to 18,402.34 points on Monday. The Dow Jones Industrial Average lagged, falling 0.1% to 39,344.79 points. 

Earnings season to begin with banks

Focus this week will also be on the second quarter earnings season, which is set to begin with prints from several major banks. 

JPMorgan Chase&Co (NYSE:JPM), Wells Fargo &Company (NYSE:WFC) and Citigroup Inc (NYSE:C) are set to report quarterly earnings on Friday. PepsiCo Inc (NASDAQ:PEP) and Delta Air Lines Inc (NYSE:DAL) are also on tap this week.