Nasdaq, S&P 500, Dow Jones futures rise as market looks to break out of slump

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Stock index futures point to a higher opening Tuesday with Wall Street hoping to shake off the Jay Powell hangover.

Nasdaq 100 futures (NDX:IND) +1%, S&P futures (SPX) +0.8% and Dow futures (INDU) +0.6% are higher.

“Whether June 16 turns out to be the bottom or a bottom for the 2022 bear remains to be seen,” Wells Fargo said. “In our view, an aggressive Federal Reserve, and upcoming recession, and the potential for earnings correction argues the latter.”

Rates are lower. The 10-year Treasury yield (US10Y) is down 4 basis points to 3.07% and the 2-year yield (US2Y) is down 1 basis point to 3.42%.

On the economic front, the Conference Board releases its measure of August consumer confidence shortly after the start of trading. Economists expect it to tick higher to about 98, but those surveys seem to get only more partisan.

The JOLTs report will provide the lagging opening and quits rate data for July. The forecast is for job openings to drop to 10.475M.

Friday’s payrolls report “could go a long way to determining whether the Fed move by 50bps or 75bps,” Deutsche Bank’s Henry Allen said. “Our US economists expect that there’ll be another +300k increase in nonfarm payrolls, which would leave the unemployment rate unchanged at 3.5%.”

“Markets are pricing in +69.1bps worth of hikes for September right now, so much closer to 75 than 50 still. But last month we saw how a strong jobs report jolted market expectations towards 75bps, so a surprise in either direction could well see that shift once again.”

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