U.S. Stock Futures Little Changed, Powell Flags Aggressive Rate Hikes

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U.S. Stock Futures Little Changed, Powell Flags Aggressive Rate Hikes
Credit: © Reuters.

By Oliver Gray 

Investing.com - U.S. stock futures traded steady in early APAC deals on Tuesday, after major benchmark averages declined during volatile trade as Federal Reserve Chair Jerome Powell said the central bank is open to higher rate hikes to combat rising inflation, while oil prices surged again following news that the European Union is weighing a ban on Russian oil.

During regular trading on Monday, the  Dow Jones Industrial Average fell 201.94 points or 0.58% to 34,553 breaking a five-day winning streak. The  S&P 500 lost 1.94 points or 0.04% to 4461.17 while the  NASDAQ Composite fell 55.38 points or 0.4% to 13,838.46.

Dow Jones Futures were just 0.03% lower while S&P 500 Futures and Nasdaq 100 Futures traded flat.

Among stocks, major technology players retreated, with Block Inc (NYSE: SQ ) down 4.14%, Microsoft Corporation (NASDAQ: MSFT ) losing 0.42%, Meta Platforms Inc (NASDAQ: FB ) down 2.31%, Netflix Inc (NASDAQ: NFLX ) falling 1.58% and Alphabet Inc (NASDAQ: GOOGL ) easing 0.02%, while Apple Inc (NASDAQ: AAPL ) and Amazon.com Inc (NASDAQ: AMZN ) adding 0.85% and 0.15% respectively.

Financials were broadly lower, as JPMorgan Chase & Co (NYSE: JPM ) fell 0.32%, Citizens Financial Group Inc (NYSE: CFG ) lost 0.35%, Bank of America Corp (NYSE: BAC ) fell 0.14%, Citigroup Inc (NYSE: C ) dipped 0.65% Wells Fargo & Company (NYSE: WFC ) fell 0.54%, Morgan Stanley (NYSE: MS ) dipped 2.33% and Goldman Sachs Group Inc (NYSE: GS ) lost 1.85%.

Oil-related stocks also surged as WTI and Brent crude rose 6.6% and 8% respectively overnight. Occidental Petroleum Corporation (NYSE: OXY ) lifted 8.39%, Devon Energy Corporation (NYSE: DVN ) gained 5.44%, Exxon Mobil Corp (NYSE: XOM ) added 4.49%, Chevron Corp (NYSE: CVX ) lifted 1.8%, ConocoPhillips (NYSE: COP ) gained 3.17% and Marathon Oil Corporation (NYSE: MRO ) rallied 8.54%.

In extended deals, Nike Inc (NYSE: NKE ) gained 5.89% after the company's third quarter results beat analyst’s expectations, with EPS at 87 cents versus 71 cents expected, while revenue was at $10.87 billion versus $10.59 billion expected.

In policy news, Federal Reserve Chairman Jerome Powell said in prepared remarks for the National Association for Business Economics that the central bank is prepared to raise interest rates by a half percentage-point at its next meeting to combat inflation which is currently running at 40-year highs.

United States 10-Year bond yields surged to near 34-months highs of 2.297% after the news.

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