5 Things to Know Before the Stock Market Opens

Federal Reserve Chair Jerome Powell is expected to reaffirm the central bank is in no rush to cut interest rates as he kicks off his two-day testimony before Congress; CrowdStrike (CRWD) shares are gaining on its bullish outlook, driving up shares of peers such as Palo Alto Networks (PANW); OpenAI has hit back at Elon Musk’s lawsuit in a blog post; Nordstrom (JWN) shares are slumping as it predicts sluggish sales; and bitcoin (BTC) is back above $67,000. Ahead of Powell’s testimony, U.S. equity futures are up and gold is little changed after hitting records. Here’s what investors need to know today.

1. Fed Chair Powell Expected to Say No Rush to Cut Rates as Two-Day Testimony Kicks Off 

Federal Reserve Chair Jerome Powell is set to testify before Congress to deliver his semiannual report on the state of the economy. Over the next two days, first with the House committee today and a Senate panel Thursday, the U.S. central bank head is expected by economists to deliver the same message many of his colleagues have offered since their last meeting—that there is no rush to cut the influential fed funds rate. That is because inflation is still hanging above the Federal Reserve’s goal of 2%, while the job market remains strong and consumer spending has bolstered the country’s gross domestic product (GDP). Also due today and in focus for investors looking for data that determine the path of interest rates is the JOLTS, or Job Openings and Labor Turnover Survey.

2. CrowdStrike Soars on Bullish Results, Drives Up Peer Palo Alto

CrowdStrike Holdings (CRWD) shares surged nearly 25% in premarket trading after the cybersecurity company topped Wall Street’s quarterly estimates and issued a better-than-expected current-quarter and full-year outlook. The company stuck with its goal of reaching $10 billion in annual recurring revenue by 2030, up from $3.44 billion now, and announced plans to buy Flow Security to beef up its cloud data protection. Other cybersecurity firms also rose, with Palo Alto Networks (PANW), which drove a decline in the sector last month after lowering its guidance, gaining 3.4% in early trading. 

3. OpenAI Alleges Musk Sought to Make Startup a For-Profit Business

OpenAI hit back at a lawsuit filed against it last week by Elon Musk. In a blog post Tuesday, OpenAI alleged that the billionaire had initially backed the startup’s plans to become a commercial business. OpenAI included a slew of emails from the billionaire allegedly proving he backed the company’s move to pursue profits. It also said it intends to “move to dismiss all of Musk’s legal claims.” Musk sued OpenAI and chief executive Sam Altman, among others, alleging they breached the company’s founding mission when it was set up in 2015 by putting profits over seeking benefits to humanity. The Tesla (TSLA) CEO said OpenAI’s close relationship with Microsoft (MSFT), the startup’s largest investor, had led it to abandon its original principles of creating an open-source technology not beholden to profits.

4. Nordstrom Tumbles as Upscale Retailer Predicts Possible Sales Decline 

Nordstrom (JWN) shares slumped nearly 10% in premarket trading, after the upscale retailer said sales for fiscal 2024 could fall. The company said full-year revenue, including retail sales and credit cards, will range from a 2% decline to a 1% gain compared with the previous year. The shares fell even as its fourth-quarter earnings beat forecasts. Nordstrom has been hurt by consumers becoming pickier and more price-conscious as they grapple with inflation.

5. Bitcoin Back on the Rise Above $67,000

The price of bitcoin (BTC) was back up above $67,000 after retreating to below $62,000 Tuesday as traders took profits after the crypto currency hit record highs. The digital asset reached an all-time high of $69,191.95 on Tuesday, and has almost tripled in the past year alone. Driving gains in the past few weeks has been the token’s entry into mainstream investing, after the Securities and Exchange Commission (SEC) in January approved 11 bitcoin spot ETFs, as well as the upcoming “halving” event that will limit its supply growth. However, analysts are increasingly growing wary of the sustainability of bitcoin’s price gains, noting that momentum investing is driving a lot of the increase.

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