Powell's Comments And Jobs Data This Week Lead Investors To Raise Stock Futures Slightly

The U.S. stock market rose on Monday as investors looked forward to a week filled with economic data and Federal Reserve comments.

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There was a rise of 57 points, or 0.2%, in Dow Jones Industrial Average futures. Meanwhile, both the S&P 500 and the Nasdaq-100 advanced by 0.3% and 0.5%, respectively.

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As the yield on the benchmark 10-year note dropped by about 5 basis points to 3.915% last week, the move upward in futures was a result of a lower bond yield, leading to a move upward in futures.

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Major averages are coming off a positive week. After a four-week losing streak, the Dow industrials gained 1.75% last week, ending a four-week losing streak. The S&P 500 was up by 1.90% for the week, while the Nasdaq closed the week on a high note by 2.58%.

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The gains were made despite the fact that at various points in the last week, the yield on the benchmark 10-year Treasury note rose above the psychological 4% level. Borrowing costs for consumers increase when the 10-year yield rises, and investor confidence may drop as a result.

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Sri Kumar, SriKumar Global's CEO, told Trade Algo on Friday that, if you are afraid of a recession, you should buy the 10-year Treasury. “Equity is a losing proposition today, and until you can see the valuations come down significantly, you should not trust Friday's rally.”

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The Fed Chairman Jerome Powell's congressional testimony on Tuesday and Wednesday will provide investors and lawmakers with valuable information about the central bank's outlook for inflation and its rate-hiking campaign going forward, which should prove to be a catalyst for investors and lawmakers this week.

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There is also high anticipation for the February jobs report to be released on Friday, which follows January's blockbuster report which showed that the economy had added 517,000 jobs in January. Dow Jones polled economists last month and they expect 225,000 jobs to be added by the end of the month.

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After the bell, Monday's factory order data will be released. Dow Jones consensus estimates indicate that the economy will decline by 1.8% in January, compared with expectations from economists. A gain of 1.8% in the prior reading was compared to a gain of 1.8% in the prior reading.

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