New York Stock Market Opens Higher Awaiting Powell's Remarks and Economic Indicators

The major indices of the U.S. New York stock market all opened higher on Monday, the 6th (local time), as investors awaited key events scheduled for this week, including Federal Reserve Chairman Jerome Powell's congressional hearings and the February employment report.

As of 9:58 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 36.11 points (0.11%) from the previous close, trading around the 33,427 level. The large-cap S&P 500 index rose 12.67 points (0.31%) to about 4,058, while the tech-heavy Nasdaq index gained 49.37 points (0.42%) to reach approximately 11,738.

Currently, eight sectors within the S&P 500, excluding energy, materials, and consumer discretionary stocks, are showing gains. Apple is trading more than 2% higher following Goldman Sachs' upgrade of its price target to $199. Biotech firm Biogen rose over 2% after JPMorgan upgraded its rating with increased weighting. KB Home fell more than 1% after JPMorgan downgraded its investment rating by two levels. Silvergate Capital continued to decline by over 7% amid spreading bank run concerns following its earlier delay in submitting the 10-K annual report.

[Image source=Reuters Yonhap News]

Investors are closely watching this week's scheduled events, including Chairman Powell's hearings, the employment report, and the Beige Book release. Powell is set to appear before the Senate and House on the mornings of the 7th and 8th, respectively, to deliver his semiannual monetary policy report and answer lawmakers' questions. Market volatility is expected to follow depending on the tone of his remarks.

With recent employment, inflation, and consumer data all showing strong readings, there is speculation that Powell may signal a continuation of aggressive tightening. While he is expected to emphasize the need for ongoing tightening to reduce inflation, he is likely to avoid direct comments on the specific magnitude of future rate hikes.

This week will also see the release of key indicators critical to rate decisions, such as the February employment report and the January Job Openings and Labor Turnover Survey (JOLT). The February employment report will be closely watched to see if it follows the trend of January’s report, which surprised by nearly tripling expectations and heightened tightening concerns. Nonfarm payrolls for February are estimated to have increased by 225,000. The Beige Book, to be released on the 8th, is also attracting attention as it contains the Fed’s economic assessment. The January report noted stagnation or slight declines in growth across six districts, concluding that overall growth was flat.

Soaring Treasury yields have started to decline. In the New York bond market, the benchmark 10-year U.S. Treasury yield fell to around 3.92%. Last week, it fluctuated around the 4% level amid tightening concerns. The 2-year yield, which is sensitive to monetary policy, stands at about 4.87%.

The dollar index, which measures the value of the U.S. dollar against six major currencies, is trading slightly lower around the 104 level.

Economic media outlet CNBC reported, "As Treasury yields decline, the New York stock market is showing gains," adding, "The key catalyst this week will be Chairman Powell’s congressional testimony and related events."

European markets are showing mixed performance. Germany’s DAX index is up about 0.45% from the previous close. The UK’s FTSE is down 0.35%, while France’s CAC index is up 0.29%.

This content was produced with the assistance of AI translation services.