Stock market news live updates: Stock futures rise to extend gains after Powell comments

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U.S. banal futures opened higher Tuesday day aft rallying during the regular trading day, arsenic investors took successful reassurances from Federal Reserve Chair Jerome Powell that the cardinal slope was acceptable connected utilizing its policies to bring down ostentation inactive moving astatine multi-decade highs.

Contracts connected the S&P 500 edged higher. The blue-chip scale ended Tuesday's regular trading time higher by 2% to settee astatine at 4,088.85. Technology and maturation stocks that had been beaten down implicit the past period recovered immoderate losses, sending the Nasdaq higher by 2.8%. And the cyclical small-cap Russell 2000 besides shook disconnected immoderate caller losses, climbing 3.2%.

The marketplace moves Tuesday came pursuing a mates of coagulated reports connected U.S. economical activity, showing some user spending and manufacturing accumulation were holding up strongly. U.S. retail income grew astatine a 0.9% complaint successful April aft a sharply upwardly revised 1.4% monthly emergence successful March, suggesting consumers were continuing to walk adjacent arsenic user prices have climbed astatine the fastest complaint since the 1980s. The latest people connected U.S. concern accumulation besides exceeded estimates with a leap of 1.1% past month, oregon much than treble the expected rise.

The reports reflected ongoing resilience successful immoderate of the cardinal components of home enactment and helped astatine slightest temporarily assuage concerns that the U.S. system mightiness beryllium imminently tumbling into a downturn. And a still-strong economical backdrop has fixed the Federal Reserve much country to rise involvement rates and different tighten monetary argumentation to bring down ostentation without fearfulness of profoundly disrupting maturation successful different areas similar the labour market. Fed Chair Powell acknowledged connected Tuesday that portion "there could beryllium immoderate symptom progressive successful restoring terms stability," he believed the Fed volition beryllium capable to "sustain a beardown labour market." Powell besides said that determination remained "broad support" for 2 much 50 ground constituent involvement complaint hikes astatine the Fed's adjacent policy-setting meetings, reiterating his presumption from the Fed's past gathering earlier this month.

"I don't deliberation helium said thing that caught america disconnected defender ... but let's not hide wherever we are," Ryan Detrick, LPL Financial Chief Market Strategist, told Yahoo Finance Live connected Tuesday, noting that the S&P 500 has fallen for six consecutive weeks heading into this week. "It hasn't been down 7 weeks successful a enactment for 20 years, truthful we're awfully oversold here. Then you travel successful contiguous and you've got concern accumulation beauteous solid, you've got retail income beauteous solid. Things aren't perfect, but we conscionable deliberation truthful overmuch of the negativity that is priced successful ... it's conscionable a small overboard for us, and we deliberation this could precise good beryllium an accidental for immoderate of the longer-term investors here."

Still, however, concerns implicit elevated prices, geopolitical concerns successful Ukraine and virus-related disruptions successful China stay risks to equities. And though consumers person inactive been spending amid rising inflation, that's travel arsenic galore companies person been absorbing expanding labor, earthy materials and proscription costs. Walmart (WMT) connected Tuesday reported weaker-than-expected quarterly earnings and slashed its nett outlook for the year, citing higher wages and ongoing costs related to proviso concatenation disruptions.

Companies including Lowe’s (LOW), Target (TGT) and Cisco (CSCO) are poised to study quarterly results connected Wednesday.

6:10 p.m. ET Tuesday: Stock futures resume declines

Here's wherever markets were trading Tuesday evening:

  • S&P 500 futures (ES=F): +9.5 points (+0.23%) to 4,094.25

  • Dow futures (YM=F): +67 points (+0.21%) to 32,648.00

  • Nasdaq futures (NQ=F): +27 points (+0.21%) to 12,587.25

 Traders enactment    connected  the level  of the New York Stock Exchange (NYSE) connected  May 12, 2022 successful  New York City. The Dow Jones Industrial Average fell successful  greeting  trading arsenic  investors proceed  to interest   astir  ostentation  and different   planetary  issues.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK - MAY 12: Traders enactment connected the level of the New York Stock Exchange (NYSE) connected May 12, 2022 successful New York City. The Dow Jones Industrial Average fell successful greeting trading arsenic investors proceed to interest astir ostentation and different planetary issues. (Photo by Spencer Platt/Getty Images)

Emily McCormick is simply a newsman for Yahoo Finance. Follow her connected Twitter.

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