Futures Point To Broadly Lower Open For Wall Street

(RTTNews) - Fed Chair Kevin Warsh's testimony before Congress and a slew of Fed talks might get special attention on Tuesday. Geopolitical situation is closely monitored by investors.

Oil prices rose sharply to hit a one-month high on Tuesday. Brent crude futures jumped nearly 4 percent to $86.30 a barrel. WTI crude futures were up 2.6 percent at $80.16.

Gold traded higher. Spot gold rose 0.4 percent to $4,018.05 an ounce. The U.S. gold futures at $4,025.10.

The U.S. dollar eased ahead of the release of U.S. CPI and PPI inflation data as well as that could shape the outlook for interest rates.

Gold traded higher at $4,027 an ounce after falling around 3 percent to hit a two-week low on Tuesday amid hawkish Fed bets.

Money markets are pricing in nearly a 50 percent probability of a Federal Reserve rate hike in July after Governor Christopher Waller expressed caution about inflation and said a hot core inflation reading this week could prompt the FOMC to consider tightening policy at its late-July meeting.

As of 7.55 am ET, the Dow futures were losing 302.00 points, the S&P 500 futures were losing 8.75 points and the Nasdaq 100 futures were slightly up 142.50 points.

The U.S. major averages finished lower on Monday. The Nasdaq slumped 408.43 points or 1.6 percent to 25,873.18 and the S&P 500 slid 60.05 points or 0.8 percent to 7,515.34. The narrower Dow posted a more modest loss, dipping 138.37 points or 0.3 percent to 52,498.64.

On the economic front, the Consumer Price Index or CPI for June will be published at 8.30 am ET. The consensus is for a decline of 0.1 percent, while it was up 0.5 percent in the prior month.

Fed Chair Kavin Warsh will testify before the House Financial Services Committee hearing, 'The Federal Reserve' Semi-Annual Monetary Policy Report' at 10.00 am ET.

Christopher Waller will speak on the economic outlook in conversation before the New York Association for Business Economics at 11.30 am.

Fed Governor Michael Barr will present before the Fed Board Annual Financial Inclusion Conference at 11.40 am ET and will participate in fireside chat on 'Artificial Intelligence and Financial Inclusion at 11.55 am ET.'

Economist Lisa Cook will moderate 'Consumers, Artificial Intelligence, and Financial Inclusion: Balancing Opportunities and Challenges' discussion before the Federal Reserve Board Annual Financial Inclusion Conference at 12.30 pm ET on Tuesday.

Chicago Fed President Austan Goolsbee will participate in moderated question-and-answer session before hybrid Kenosha Area Business Alliance Business Lunch event at 1.00 pm ET.

Michelle Bowman will speak on 'Responsible Innovation and Financial Inclusion' before the Federal Reserve Board Annual Financial Inclusion Conference at 2.55 pm ET.

Asian stocks ended mostly higher on Tuesday. China's Shanghai Composite index surged 1.36 percent to 3,967.13. Hong Kong's Hang Seng index ended up 0.52 percent at 24,340.73.

Japanese markets reversed course to end higher. The Nikkei closed 0.74 percent higher at 67,743.50. The broader Topix index settled 0.79 percent higher at 4,038.98.

Australian markets recovered from an early slide to end on a flat note. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.52 percent to 13,651.22.