US stock futures surged on Wednesday, with tech stocks leading the way after a steep sell-off the previous day. Investors are eagerly awaiting Federal Reserve Chair Jerome Powell’s testimony to Congress, hoping for clues on the central bank’s stance on interest rates.
Futures on the Nasdaq 100 jumped roughly 0.7%, signaling a strong rebound for tech stocks. S&P 500 futures added 0.4% and Dow Jones Industrial Average futures put on 0.2%, bouncing back from losses of more than 1%.
Powell’s testimony is expected to provide a catalyst for the market, as investors look for any hints of a potential pivot on interest rates. The Fed has been consistent in its message that there is no rush to cut rates, but recent economic data and market volatility have raised concerns.
In the midst of this uncertainty, individual stocks like CrowdStrike are making waves. Shares of the cybersecurity company continued to rally after a strong earnings report, signaling healthy demand in the sector. Other cybersecurity stocks, such as Zscaler, also saw gains in premarket trading.
As investors brace for Powell’s testimony, the question of whether it’s time to rotate into European stocks from more expensive US equities is on the table. Goldman Sachs economists predict a faster pace of rate cuts in markets outside the US, raising the possibility of a shift in investment strategy.
Overall, the market is eagerly anticipating Powell’s remarks and hoping for clarity on the Fed’s future actions. Stay tuned for updates as the day unfolds.
