Stocks ended mixed on Monday as investors looked ahead to Jerome Powell’s testimony this week. The Federal Reserve’s policy will also be influenced by the latest jobs data, set for release on Friday. Despite the mixed performance, Nvidia and Super Micro Computer saw significant gains of over 3% and 19% respectively.
US stocks experienced limited upside on Monday, with the S&P 500 and Nasdaq showing a marked slowdown from last week’s record-setting rally. Investors are exercising caution as they await key central bank commentary.
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress on Wednesday and Thursday. While markets anticipate interest rate cuts to begin in June, Powell’s remarks could provide further clarity on the direction of monetary policy.
“While a lot of economists are expecting Chair Powell to reiterate many of his comments that he made at the end of the January Fed meeting, there’s always the potential for some surprises which could lead to volatility,” said Sam Millete, Director of Fixed Income at Commonwealth Financial Network.
In addition to Powell’s testimony, other Fed speakers including Philadelphia Fed President Tom Harker, Neel Kashkari, and Loretta Mester will also provide insights throughout the week.
The upcoming February nonfarm payrolls report, expected on Friday, will play a crucial role in shaping policy decisions. Analysts are estimating a gain of 210,000 jobs last month, compared to 353,000 in January.
While the broader market showed muted movements on Monday, tech stocks continued to rise. Nvidia and Super Micro Computer stood out with gains of over 3% and 19% respectively.
As the week progresses, investors will be closely monitoring developments in commodities, bonds, and cryptocurrencies alongside the evolving market trends.
