Tech stocks are leading the market today following a cold start to the week. Why are stocks up today?
Well, it appears Wall Street is turning the corner after back-to-back losses on Monday and Tuesday. Indeed, the S&P 500 fell 1.13% during the first two days of the week, while the tech-centric Nasdaq Composite shed 2% of its value over the same period.
Things are clearly looking brighter today, with the S&P and Nasdaq up 0.49% and 0.48%, respectively, at the time of writing.
That said, not everyone is enjoying today’s return to the green. Indeed, Apple (NASDAQ:AAPL) is on track for its sixth straight day of losses as it sorts out a potential $2 billion antitrust lawsuit from the European Union. AAPL stock is currently down 0.51%, adding to its 8.8% losses year-to-date.
Why Are Stocks Up Today?
Investors may also be reacting to Federal Reserve Chair Jerome Powell’s visit to Capitol Hill, the first of two planned Congressional appearances this week.
While Powell wasn’t particularly hawkish or dovish, he did maintain the possibility of rate cuts to come this year and reconfirmed that rates are probably at their peak this cycle.
“We believe that our policy rate is likely at its peak for this tightening cycle,” Powell said. “If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”
As expected, Powell told lawmakers that Fed officials want to see more data before opting to lower rates as part of the central bank’s ongoing battle with inflation.
“No news is good news from Powell,” Noted David Russell, Global Head of Market Strategy at TradeStation. “He confirmed that the bias from here is likely toward lower rates and emphasized potential risks from not cutting.”
Some believe that any signs of deteriorating economic conditions may force the Fed’s hand. Indeed, Wall Street is keeping a close eye on the February jobs report, due Friday. Should unemployment come out higher than expected, it may strengthen the case for a near-term rate cut.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
