US futures advance after new Wall Street high: Markets Wrap

(Times Of Update) — U.S. stocks are set to hit a new all-time high on Tuesday as investors await Federal Reserve Chairman Jerome Powell’s testimony before Congress for clues on the outlook for U.S. interest rates.

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S&P 500 futures edged higher after the benchmark index closed 0.1% higher in New York, setting its 35th record of the year, as the second-quarter earnings season gets underway. Contracts on the Nasdaq 100 rose about 0.3%. The dollar hovered near a one-month low, while U.S. Treasuries were flat.

Powell faces pressure from lawmakers eager to see rates fall and those unhappy with the Fed’s latest plan to boost capital requirements for Wall Street banks. Markets are pricing in two rate cuts this year, with a roughly 70% chance of the first in September, according to swaps data compiled by Times Of Update.

“With recent signs of slowing growth and the labor market, markets will be watching closely to see if Powell gives any guidance on the timing of rate cuts,” said Carol Kong, a rate strategist at Commonwealth Bank of Australia in Sydney. “Markets could price in a September cut and the dollar could fall further if Powell’s comments are seen as dovish.”

Meanwhile, Europe’s benchmark Stoxx 600 index (^STOXX) declined. France’s CAC 40 index (^FCHI) underperformed as investors remained wary of increased government spending after the left’s resurgence in weekend elections that produced a parliament without an absolute majority.

Among European stocks that were on the rise, BP Plc (BP) fell more than 3% after it said it would take an impairment loss of up to $2 billion due to writedowns in its second-quarter results. Dassault Systemes SE (DSYP.XD) fell after cutting its full-year profit forecast.

Japanese stocks led gains in Asia, with semiconductor stocks tracking gains in their U.S. counterparts. Information technology stocks were the biggest contributors to gains in the MSCI Asia Pacific index. The Nikkei 225 Stock Average (^N225) hit a record high, extending its gain for the year to more than 24%.

In commodities, oil steadied after losing nearly 2% in the previous two sessions as the worst of Storm Beryl passed over the U.S. for the crude hub of Houston and surrounding areas. Gold was little changed after posting its biggest drop in two weeks on Monday. Copper declined.

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Main events of the week:

• China’s overall financing, money supply, new yuan loans, from Tuesday

• Jerome Powell delivers his semiannual testimony before the Senate Banking Committee on Tuesday

• U.S. Treasury Secretary Janet Yellen testifies before the House Financial Services Committee on Tuesday

• Fed members Michael Barr and Michelle Bowman speak Tuesday

• China PPI, CPI, Wednesday

• Jerome Powell Testifies Before the House Financial Services Committee on Wednesday

• Fed members Austan Goolsbee, Michelle Bowman and Lisa Cook speak Wednesday

• US CPI, Initial Jobless Claims, Thursday

• Fed members Raphael Bostic and Alberto Musalem speak Thursday

• Trade with China, Friday

• University of…