US stocks trade mixed as investors await economic-outlook speech from Fed’s Powell

Brendan McDermid/Reuters

  • US stocks traded mixed on Tuesday as investors waited for economic-recovery commentary from Federal Reserve Chair Jerome Powell.
  • The central-bank chief is expected to reemphasize the importance of fiscal stimulus to the nation’s rebound.
  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to continue stimulus negotiations after speaking for about an hour on Monday.
  • Oil continued to rally after notching its biggest one-day gain since May. West Texas Intermediate crude rose as much as 3.8%, to $40.69 per barrel.
  • Watch major indexes update live here.

US equities traded mixed on Tuesday after notching their biggest single-day gain in nearly four weeks.

Investors looking for new commentary on the nation’s economic rebound will tune in to Federal Reserve Chair Jerome Powell’s keynote speech at a conference hosted by the National Association for Business Economics. The central-bank chief has repeatedly stressed the importance of fiscal stimulus to the recovery and maintained that the path forward is highly uncertain.

With infection rates rising in the US, Powell could provide a gloomier outlook than in past remarks. The chair has previously tied the economy’s path to the outbreak’s trajectory.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

  • S&P 500: 3,407.04, down 0.1%
  • Dow Jones industrial average: 28,179.18, up 0.1% (32 points)
  • Nasdaq composite: 11,313.34, down 0.2%

Read more: These 30 global stocks are positioned to stay on top in the 4th quarter as the contrast between a recovering economy and rising COVID cases keeps markets volatile, RBC says

The tepid trading came after stocks surged through Monday’s session. Revived stimulus hopes lifted shares, and President Donald Trump’s plan to return to the White House from Walter Reed medical center boosted sentiment through the afternoon. Though the Nasdaq composite gained the most on Monday, the index lagged behind its peers in Tuesday trading.

Investors will also focus on comments on progress on a relief bill from House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin. The two spoke for about an hour on Monday but failed to reach an agreement. A follow-up conversation was scheduled for Tuesday, the speaker’s spokesman said.

Shares of Social Capital Hedosophia Holdings Corp. III climbed after the special-purpose acquisition company, or SPAC, announced a merger with Clover Health. The deal values Clover Health at $3.7 billion.

Read more: A 20-year hedge-fund vet shares the 3 stocks he thinks make the perfect play for a booming housing recovery as the US heads for the suburbs

“Over the next decade, our belief is that Clover Health will build large market adoption and shareholder returns by ‘bending the curve’ in healthcare delivering better outcomes at lower costs,” said Chamath Palihapitiya, Social Capital’s CEO.

Spot gold edged higher, to $1,919.17 per ounce at intraday highs, holding the key $1,900 support level. The US dollar wavered, and Treasurys fell slightly.

Oil prices continued to rally after Monday saw futures leaped the most since May. West Texas Intermediate crude rose as much as 3.8%, to $40.69 per barrel. Brent crude, oil’s international benchmark, jumped 3.5%, to $42.72 per barrel, at intraday highs.

Now read more markets coverage from Markets Insider and Business Insider:

The space industry will grow by over $1 trillion in the next decade, says Bank of America. Here are the 14 stocks best-positioned to benefit from the boom.

Growth stocks enjoying best year-to-date outperformance since 1979 — but value can soon bounce back, Bank of America says

Tech stocks can soar another 25% during ‘next chapter’ of economic recovery, Wedbush analyst says

Source: Read Full Article