By Peter Nurse
Investing.com - U.S. stocks are set to edge higher Tuesday, consolidating after recent losses, with investors focusing on the latest comments from Federal Reserve chief Jerome Powell. However, worries about soaring coronavirus cases globally continue to weigh.
At 7:05 AM ET (1105 GMT), S&P 500 Futures traded 2 points, or 0.1%, higher, the Dow Futures contract fell 40 points, or 0.2%, while Nasdaq 100 Futures rose 48 points, or 0.4%.
Stocks tumbled across the board on Monday, as the Dow Jones Industrial Average declined 1.8%, the S&P 500 lost 1% and the Nasdaq Composite dropped 0.1%. As a whole, these stocks are having their worst month since March, with the S&P and Nasdaq on a four-day losing streak and the Dow down for three straight days.
In a reversal of last week’s pattern, value-oriented sectors such as energy and industrials led the downturn, underperforming tech stocks.
U.S. Federal Reserve Chair Jerome Powell, along with Treasury Secretary Steven Mnuchin, appears on Capitol Hill later Tuesday, to address any concerns lawmakers have over the emergency measures the central bank has taken to mitigate the hit to the economy delivered by the coronavirus pandemic.
Meanwhile, the picture surrounding the virus in Europe looks more worrying, with several countries reporting a spike in cases. U.K. Prime Minister Boris Johnson is set to announce further restrictions to all entertainment venues as well as urging people to once more work from home.
Meanwhile, the rancor surrounding the death of U.S. Supreme Court Justice Ruth Bader Ginsburg and the nomination of her replacement is likely to further complicate efforts in Congress to pass another stimulus package before the presidential election.
In corporate news, Tesla (NASDAQ:TSLA) will be in the spotlight on its “Battery Day”, when the electric-car manufacturer is expected to unveil steps to boost battery production.
The saga surrounding TikTok continues, with the Chinese state-backed newspaper Global Times saying a deal for the video sharing app is unlikely to get approval from Beijing. This comes after Oracle (NYSE:ORCL) and TikTok's parent ByteDance announced they had reached a deal over the weekend.
Oil prices climbed Tuesday, rebounding after the previous session’s sharp losses, with Tropical Storm Beta proving less disruptive than feared. However, persistent worries about fuel demand as coronavirus cases continue to flare up around the globe remain a drag.
Traders will be watching out for the American Petroleum Institute's data on U.S. oil inventories due later on Tuesday.
U.S. crude futures traded 0.9% higher at $39.88 a barrel, while the international benchmark Brent contract rose 1% to $41.86. Both oil benchmarks fell around 4% on Monday.
Elsewhere, gold futures were flat at $1,910.25/oz, while EUR/USD traded 0.1% lower at $1.1755.