US stock market rises on optimism of potential Fed rate cut, S&P hits record high

From Nasdaq:

Wall Street’s main indexes rose, with the Nasdaq leading, as investors were optimistic about a potential Fed interest rate cut in June. The Philadelphia Semiconductor index hit a fresh high, up 3.2%, led by Qualcomm. Nine of the 11 S&P 500 sectors rose, with technology leading at 1.5%.

Federal Reserve Chair Jerome Powell stated that the central bank is close to having enough confidence in meeting the 2% inflation goal for interest rate cuts. Powell’s comments on rate cuts in the coming months maintained investor expectations of a June rate cut, supporting U.S. equities which had seen recent dips.

Thursday’s number of Americans filing for unemployment benefits stayed steady, signaling gradual labor market improvement. Tomorrow’s nonfarm payrolls report could offer more insight on the job market’s strength. The market may react positively, but sentiments could change depending on the report’s outcome.

The Dow Jones Industrial Average rose 0.33%, the S&P 500 jumped 0.87%, and the Nasdaq Composite surged 1.25%. Victoria’s Secret & Co. plummeted 30.4% due to a weak annual forecast. Advancing issues were dominant on NYSE and Nasdaq, setting new highs and lows on both indexes.

All eyes are on Fed Chair Powell wrapping up his two-day testimony on Thursday. The market remains watchful for potential clues on future rate cuts. Unemployment data stayed steady, holding implications for the U.S. labor market’s health. Look out for the upcoming jobs report for further insights.



Read more at Nasdaq: US STOCKS-S&P 500 hits record high, chip stocks extend rally