U.S. stock-index futures were little changed following a five-day rally on Wall Street, as investors turned their focus to Federal Reserve Chair Janet Yellen’s testimony before Congress that begins Tuesday, seeking clues on the outlook for interest rates.
S&P 500 futures expiring in March were little changed at 2,325 at 6:22 a.m. in New York. The benchmark gained 0.5 percent on Monday, as investor optimism drew support from corporate earnings. The Dow Jones Industrial Average rose 0.7 percent on Monday. Futures contracts on the Dow index on Tuesday were steady at 20,364.
U.S. stocks are climbing for a fourth consecutive month on expectations of a return of inflation, better corporate results and the prospect of fiscal spending and tax cuts by Donald Trump’s administration. The S&P 500 has gained about 25 percent over the past 12 months.
U.S. income growth has begun to improve amid better macroeconomic data, with fourth-quarter earnings rising 5 percent year-over-year, Bank of America-Merrill Lynch strategists said in a note. Results across all sectors except utilities and telecoms have so far exceeded expectations, with the biggest drivers of the beat in banks, tech hardware, capital markets and software, the strategists wrote.
Attention is shifting to Yellen’s first appearance before Congress since Trump was sworn in, as investors look for insight on whether the Fed will accelerate monetary tightening.
European stocks halted five days of gains. The euro-area economy expanded less than initially reported in the fourth quarter as growth in three of its largest economies fell short of expectations, data showed on Tuesday.
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