Stock futures rise after Dow snaps 5-day winning streak, traders weigh Powell inflation comments

Stock futures rose Tuesday, as Wall Street looked to rebound from a down session, while traders weighed Federal Reserve Chair Jerome Powell saying the central bank is open to higher rate hikes to combat rising inflation.

Futures on the Dow Jones Industrial Average rose 132 points, or 0.4%. S&P 500 futures and Nasdaq 100 futures both gained 0.3%.

Nike shares rose more than 5% in the premarket after the retailer reported a beat on the top and bottom lines for its fiscal third quarter, buoyed by strong demand in North America.

Wall Street was coming off a volatile session Monday, as Powell vowed to take "necessary steps" to curb inflation less than a week after the agency raised rates for the first time since 2018. Powell said "inflation is much too high" and added that rates could increase more than the previously approved 25 basis points if needed.

The Dow Jones Industrial Average on Monday fell 201.94 points, or 0.6%, breaking a five-day winning streak. Meanwhile, the S&P 500 finished marginally lower after rising as much as 0.4% during the session, while the Nasdaq Composite fell 0.4% to 13,838.46 after dipping as much as 1.5% at session lows.

"I'm pretty encouraged that the market came back pretty nicely in the last hour of trading," Ed Yardeni, Yardeni Research president and chief investment strategist, told CNBC's "Closing Bell: Overtime" on Monday.

"I think the market is looking for opportunities and the opportunities continue to be in areas like energy, commodities. I think the market will also find more opportunities in financials as interest rates go up and technology looks awfully cheap to me," he added.

Oil prices fell slightly Tuesday after rising sharply in the previous session on news that the European Union is weighing a ban on Russian oil. West Texas Intermediate, the U.S. oil benchmark, fell 2% to $109.63 per barrel. Brent crude, meanwhile, slid 1.4% to $113.87 per barrel.

Investors on Tuesday continued to watch the situation in Eastern Europe, with President Joe Biden saying Russian President Vladimir Putin's back is "against the wall" as the war with Ukraine nears a stalemate.