Stocks looked set to
tumble at Tuesday's open after Federal Reserve chief Ben Bernanke fanned inflation concerns. The
comments unnerved investors as they bet that the Fed would raise rates sooner
than expected. A recent jump in the unemployment rate had led some to lower
their rate hike expectations, but Bernanke said in his speech that the danger that
the economy has fallen into a "substantial downturn" appears to have
eased.
International trade: The Census Bureau and the
Department of Commerce released the April trade balance report, that showed
deficit widened to $60.9B versus median estimate of -$59.6B.
The dollar edged up against the euro and rose to a
three-month high versus the yen after President Bush called for a stronger U.S.
currency. Bernanke's hawkish inflation comments also helped support the dollar.