Andrew Harnik/AP Photo
- US stocks slipped in early Tuesday trades ahead of Fed Chair Jerome Powell’s Senate confirmation hearing.
- Stocks have come under pressure in recent weeks after the Fed signaled it will soon raise interest rates.
- The 10-Year US Treasury yield traded to levels not seen since before the COVID-19 pandemic.
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US stocks slipped in early Tuesday trades as investors await Federal Reserve Chairman Jerome Powell’s Senate confirmation hearing later today.
Powell is set to be confirmed for another four-year term as Fed Chair. Stocks had initially moved higher in premarket trades, continuing a strong rebound from Monday’s intra-day sell-off, but those gains have since evaporated.
The pressure in US stocks comes amid the Fed’s hawkish pivot towards raising interest rates and reducing its balance sheet to combat rising inflation. The 10-Year US Treasury yield traded to a high of about 1.80%, representing its highest level since before the COVID-19 pandemic started.
Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 4,663.34, down 0.15%
- Dow Jones Industrial Average: 36,027.07, down 0.12% (57.08 points)
- Nasdaq Composite: 14,880.87, down 0.4%
JPMorgan CEO Jamie Dimon said investors should expect a turbulent ride in 2022, and believes that the Fed will raise interest rates at least four times this year, if not more.
“I’d personally be surprised if it’s just four increases,” Dimon told CNBC on Monday. “I think that four increases of 25 basis points is a very, very little amount and very easy for the economy to absorb.”
Ken Griffin’s Citadel Securities, the market maker that processes transactions for various brokerage firms including Robinhood, is set to receive its first outside investment ever from Sequoia Capital and Paradigm. Citadel will receive $1.15 billion at a valuation of about $22 billion, according to a report from The Wall Street Journal.
Shares of Rivian sold off early Tuesday after it missed its 2021 EV production targets and announced that its chief operating officer left the company. Rivian fell about 3% to just above its IPO price of $78.
The LinksDAO NFT saw its price roughly double after basketball superstar Steph Curry bought a membership to the crypto collective that is trying to buy a golf course.
West Texas Intermediate crude oil rose as much as 2.20% to $79.95 per barrel. Brent crude, oil’s international benchmark, jumped as much as 1.88% to $82.39 per barrel.
Gold rose as much as 0.19% to $1,802.20 per ounce.
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