On Wednesday, Wall Street demonstrated a firmly higher start, with market participants waiting for the Fed’s chief Janet Yellen’s testimony as for suggestions to the central bank’s upcoming moves.
Futures for the Dow Jones Industrial Average grew 110 points to 16,069. The S&P 500 index went up 16.80 points to 1,865. Then, futures for the Nasdaq 100 index acquired 50.50 points, thus hitting 3,994.75. Apparently, the gains followed a surge in EU, where banks recovered after the recent sell-off.
The number one event for Wednesday is undoubtedly Yellen’s semiannual monetary policy report to the House Financial Services Committee. The given report could unveil the Fed’s intention regarding its future rate increases. Of course, investors are going to wait for any signs of regret from the Fed as for its decision to increase interest rates in December, which appeared to be the first hike for a decade.
It’s clear that Janet Yellen finds herself heavily trapped between a rock and hard place, as the Fed’s supreme official is expected to testify on the economy before the Congressional committee. With such fluctuations in global markets and the Fed still using its favorite guns as for monetary tightening, investors can expect some choppiness in the nearer future.