Bullish Sentiment as Wall Street Anticipates Federal Reserve Insights

Wall Street witnessed optimistic trends as semiconductor and technology stocks buoyed the S&P 500 and Nasdaq to potential new highs. Investors are eyeing Federal Reserve chair Jerome Powell's upcoming testimony for insights into future monetary policies, amidst a backdrop of economic data indicating potential labor market slowdowns.

Wall Street was set to open higher Tuesday, fueled by gains in semiconductor and megacap technology stocks. Investors are keenly awaiting Federal Reserve chair Jerome Powell's testimony for clues on monetary policy direction. The S&P 500 and Nasdaq are poised to clinch fresh intraday records.

Intel shares saw a 2.6% premarket rise, while Nvidia and Marvell Technology also registered gains. This marks the 35th instance this year that the S&P 500 has reached a new closing record, driven largely by AI and tech shares, even as uncertainty looms over the Fed's rate-cut plans.

The testimony by Powell, which kicks off at 10 a.m. ET, will be closely watched to decipher the central bank's response to the latest economic indicators, which have shown signs of a weakening labor market. Market analysts and investors will be looking for any shifts in policy expectations following the revelation of crucial economic data this week.

(With inputs from agencies.)