US stocks rose on Thursday, staying upbeat ahead of a second day of closely tracked testimony from Federal Reserve Chair Jerome Powell. Tech stocks led the charge, with the Nasdaq Composite gaining as much as 1.4%, while the S&P 500 added almost 1% to touch record highs. The Dow Jones Industrial Average also saw gains of 0.5%.
Investors have been closely monitoring Powell’s comments on the economy and monetary policy, with no bad news or surprises emerging from his testimony. Powell reiterated the central bank’s intentions on rate cuts, stating that they are likely to come this year if inflation data continues to show cooling.
On the economic data front, jobless claims remained unchanged at 217,000 for the week ending March 2, with continuing claims just above 1.9 million. The non-farm payroll report is eagerly awaited for release on Friday morning.
Gold prices continued to rise for the fifth consecutive day, hitting a fresh high above $2,160 as the prospect of a rate cut gave fresh impetus to the record-setting rally.
In corporate news, shares of Victoria’s Secret plunged over 25% after the lingerie maker’s sales guidance fell short of expectations.
Overall, margin growth remains a bullish sign for stocks despite high valuations, with companies reporting strong earnings and beating estimates. This positive trend in margins is helping to support stocks even at stretched levels.
The market rally was led by Communication Services, Technology, and Materials sectors, all rising over 1%. New York Community Bancorp also saw a 7% gain after announcing a dividend cut and a capital raise plan.
As investors await further developments in the market, the focus remains on Powell’s testimony and the upcoming jobs report, which will provide more insights into the future direction of interest rates and the economy.
