ASX to drop, US stocks rise on Powell’s rate signal

Australian shares are poised to drop at the open. US stocks were mostly modestly higher, as investors interpreted Federal Reserve chairman Jerome Powell’s testimony to Congress as a signal that the probability of a rate pivot in September is rising.

The S&P 500 was 4.1 points or 0.07 per cent higher to 5576.98 at 4.03pm; that marks its 36th record closing higher this year and the sixth consecutive day of gains, its longest winning streak since January. The Nasdaq Composite also closed at another record high.