NEW YORK, March 6 — US stock indexes were set to open higher today as Treasury yields retreated further, ahead of Federal Reserve Chair Jerome Powell’s testimony and jobs data this week that could offer fresh cues on the trajectory of interest rates.

The three main US stock indexes rallied on Friday and notched weekly gains as yields pulled back from their peaks after comments from Fed policymakers calmed jitters around aggressive rate hikes.

The yield on US 10-year Treasury notes slipped to 3.91 per cent, its lowest since March 1, while the two-year yield inched down to 4.84 per cent after touching its highest since 2007 last week.

Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation numbers fueled bets that the central bank could raise interest rates to a higher-than-expected level.

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“Investors are bracing for Powell’s comments tomorrow and I don’t think he’s going to say very much from what he has been saying all along. The Fed has been basically setting the stage for further rate hikes, perhaps beyond May and the market is well aware of that,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Traders expect at least three more 25-basis-point hikes this year and see interest rates peaking at 5.44 per cent by September from 4.67 per cent now.

US stocks have turned quite volatile in recent weeks after a strong performance at the start of this year as investors brace for the possibility of rates remaining higher for longer. The benchmark S&P 500 is up 5.4 per cent so far this year after a 19.4 per cent plunge in 2022.

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Investors are awaiting factory orders data for January, due at 10:00 a.m. ET, to assess the impact of higher rates on the manufacturing sector.

At 8:27 a.m. ET, Dow e-minis were up 8 points, or 0.02 per cent, S&P 500 e-minis were up 7.5 points, or 0.19 per cent, and Nasdaq 100 e-minis were up 46.25 points, or 0.38 per cent.

Shares of Apple Inc climbed 1.7 per cent in premarket trading after Goldman Sachs initiated coverage on the iPhone maker with a “buy” rating.

US-listed shares of Chinese companies Alibaba and PDD Holdings fell 0.5 per cent and 0.7 per cent, respectively, after China set a modest annual economic growth target of about 5 per cent, below market expectations of 5.5 per cent-plus growth.

Shares of cryptocurrency-related companies fell after Silvergate Capital Corp pulled the plug on its crypto payments network, after raising doubts on the company’s ability to stay in business. The California-based bank slid 8.3 per cent, while peer Signature Bank declined 2.4 per cent. — Reuters