New York, NY – Stocks in the US showed resilience on Thursday, maintaining an optimistic stance in anticipation of Federal Reserve Chair Jerome Powell’s second day of testimony. The tech sector led the charge, with the Nasdaq Composite gaining up to 1.4%, while the S&P 500 reached record highs with a nearly 1% increase. The Dow Jones Industrial Average also saw a 0.5% climb.
Over the past two sessions, stocks have been on the rise as investors analyze Powell’s discussions with lawmakers on the economy and monetary policy. Powell’s message remained consistent, emphasizing that the central bank is in no rush to adjust policy. However, he did indicate that rate cuts may be on the horizon later this year.
During his testimony before the Senate Banking Committee on Thursday, Powell reiterated the Federal Reserve’s stance on potential rate cuts, contingent upon ongoing moderation in inflation data. Jobless claims released that day showed no change at 217,000 for the week ending March 2, with continuing claims slightly higher at just over 1.9 million. The highly anticipated non-farm payroll report is scheduled for release on Friday morning.
Meanwhile, gold continued its rally for the fifth consecutive day, surpassing $2,160 as the possibility of rate cuts provided fresh momentum to the precious metal’s upward trend. In corporate news, Victoria’s Secret experienced a sharp decline of over 25% after falling short of sales expectations.
On a sector basis, Communication Services, Technology, and Materials sectors spearheaded the market rally, each rising over 1%. Victoria’s Secret’s sales guidance disappointment underscored the challenges faced by the lingerie retailer, leading to a significant drop in stock value.
As the market continues to digest Powell’s statements and economic indicators, investors are eagerly awaiting further developments in the ongoing discussions surrounding monetary policy and economic recovery. The resilience displayed by US stocks in the face of uncertainty reflects a cautious yet optimistic outlook among market participants.