Markets poised for a positive open following late tech rally on Monday

Wall Street

Stock futures edge higher

U.S. stock futures are pointing to a marginally higher open on Tuesday, after technology stocks roared back into positive territory in the final hour of trading during yesterday’s session.

As of 5:30 a.m. ET, futures tied to the Dow Jones ticked up 97 points, or 0.27% to 36,049. S&P 500 futures gained 18.5 points, or 0.4% to 4,680.75 while the Nasdaq 100 futures were up 93.5 points, or 0.6% to 15,701.5.

On Monday, the tech-dominated Nasdaq 100 Composite gained 6.93 points, or to end at 14,942.83. The index had tumbled more than 2% at one point earlier in the session.

Meanwhile, the Dow gave away 162.79 points, or 0.45% to 36,068.87 while the S&P 500 dropped 6.74 points to finish at 4,670.29.

Powell nomination hearing in focus

Moving on, Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate Banking Committee at 10:00 a.m. ET today.

Powell, who has been nominated by President Joe Biden to serve a second four-year term, is expected to tell lawmakers that he has pledged “to prevent higher inflation from becoming entrenched,” according to his prepared remarks.

While Powell is widely expected to win reconfirmation to the role, his testimony is a prime opportunity for lawmakers and Wall Street to hear his views about interest rates, inflation, among other topics.

Last week, the Fed released minutes of December’s Federal Open Market Committee (FOMC) meeting. The minutes showed that Powell and other policymakers anticipate the vehicles fueling high consumer prices lasting potentially beyond 2022.

GTA owner scoops up Zynga for $12.7 billion

Take-Two Interactive (NASDAQ: TTWO), the company behind “Grand Theft Auto” and “Red Dead Redemption,” has announced plans to acquire Zynga (NASDAQ: ZNGA) in a cash and stock deal worth about $12.7 billion.

Under the terms of the transaction announced on Monday, Zynga shareholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing of the deal.

The companies expect to close the transaction in the first quarter of 2023, though it is still subject to regulatory approval.

Take-Two expects the acquisition to help it tap into Zynga’s almost cult-like following among mobile gamers.

Shares of Zynga skyrocketed 52.5% to $9.15 after the deal was announced, while Take-Two shares fell 8.7% to $150.25.