Stock futures limp into final trading session of the quarter

Jerome Powell expects interest rates to remain at zero

FOX Business’ Edward Lawrence says Federal Reserve Chairman Jerome Powell will say the second-quarter GDP is likely the largest drop in history in Tuesday’s House hearing.

U.S. equity futures are pointing to a lower open when the final session of the second quarter begins on Wall Street.

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The major futures indexes suggest a decline of 0.4 percent.

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Analysts say questions remain on how the global economy will hold up as coronavirus outbreaks expand.

Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are slated to testify before the House Financial Services Committee as part of quarterly appearances required by the $2 trillion coronavirus relief package Congress approved in March, which provided more than $450 billion for the Treasury to cover losses in emergency lending programs run by the Fed.

A survey of China factory managers released Tuesday was better than expected, suggesting the global economy may be on the upswing after bottoming out at the height of shutdowns in April-May, analysts said.

FED CHAIR POWELL SAYS ECONOMY FACES 'NEW CHALLENGES' FROM VIRUS

Asian shares rose Tuesday, cheered by a rally on Wally Street reflecting some optimism over stronger than expected economic data, despite widening coronavirus outbreaks.

Japan's benchmark Nikkei gained 1.3 percent, Hong Kong's Hang Seng edged up 0.3 percent and China's Shanghai Composite was up 0.8 percent.

The United States is ending its special treatment of Hong Kong as separate from mainland China, with both the State and Commerce departments announcing actions Monday that will pare back its special status. This comes after Beijing ushered a sweeping national security law through its rubber-stamp parliament last month that will drastically increase mainland China’s control of Hong Kong.

In Europe, London's FTSE slipped 0.3 percent, Germany's DAX gained 0.2 percent and France's CAC was little changed.

On Monday, the S&P 500 gained 1.5 percent, the Dow Jones Industrial Average rose 2.3 percent and the Nasdaq composite added 1.2 percent.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES25595.8+580.25+2.32%
SP500S&P 5003053.24+44.19+1.47%
I:COMPNASDAQ COMPOSITE INDEX9874.153149+116.93+1.20%

Monday's report on the housing market showed the number of Americans signing contracts to buy homes rose a record 44.3 percent in May from a month earlier. That was more than double the 17 percent rise that economists were expecting and a whiplash reversal from the record-breaking plunge of nearly 22 percent that came in April as the pandemic froze the market.

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Benchmark U.S. crude oil fell 33 cents to $39.36. It rose $1.21 to $39.70 a barrel on Monday. Brent crude oil for August delivery slipped 23 cents to $41.48 a barrel.

The Associated Press contributed to this article.

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