US stocks trade mixed as investors await economic-outlook speech from Fed’s Powell

NYSE Powell Traders
  • US stocks traded mixed on Tuesday as investors waited for economic-recovery commentary from Federal Reserve Chair Jerome Powell.
  • The central bank chief is expected to reemphasize the importance of fiscal stimulus to the nation’s rebound.
  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to continue stimulus negotiations after speaking on the matter for around an hour on Monday.
  • Oil continued to rally after notching its biggest one-day gain since May. West Texas Intermediate crude rose as much as 3.8%, to $40.69 per barrel.
  • Watch major indexes update live here.

US equities trade mixed on Tuesday after notching their biggest single-day gain in nearly four weeks.

Investors looking for new commentary on the nation’s economic rebound will tune into Federal Reserve Chair Jerome Powell’s keynote speech at a conference hosted by the National Association for Business Economics. The central bank chief has repeatedly stressed the importance of fiscal stimulus to the recovery and maintained that the path forward is highly uncertain.

With infection rates trending higher across the country, Powell could provide a gloomier outlook than in past remarks. The chair has previously tied the path of the economy to the virus’s trajectory.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

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The tepid trading comes after stocks surged throughout Monday’s session. Revived stimulus hopes lifted shares, and President Donald Trump’s plans to return to the White House from Walter Reed Medical Center boosted sentiments through the afternoon. Though the Nasdaq composite gained the most on Monday, the index lagged peers in Tuesday trading.

Investors will also focus on comments from House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin regarding stimulus-deal progress. The two spoke for an hour on Monday but failed to reach a final agreement. A follow-up conversation is scheduled to take place Tuesday, according to the speaker’s spokesman.

Shares of Social Capital Hedosophia Holding Corp. III climbed after the special-purpose acquisition company, or SPAC, announced it will merge with Clover Health. The deal values Clover Health at $3.7 billion.

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“Over the next decade, our belief is that Clover Health will build large market adoption and shareholder returns by ‘bending the curve’ in healthcare delivering better outcomes at lower costs,” Chamath Palihapitiya, Social Capital’s CEO,¬†said.

Spot gold edged higher to $1,919.17 per ounce at intraday highs, holding the key $1,900 support level. The US dollar wavered and Treasurys fell slightly.

Oil prices continued to rally after Monday saw futures leap the most since May. West Texas Intermediate crude rose as much as 3.8%, to $40.69 per barrel. Brent crude, oil’s international benchmark, jumped 3.5%, to $42.72 per barrel, at intraday highs.

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