Stocks rebounded after Powell's cautious approach to policy easing
From Nasdaq: 2025-03-07 14:50:10
- Stock indexes rebounded in afternoon trading, with the S&P 500 up +0.74%, Dow Jones up +0.65%, and Nasdaq 100 up +0.86%. Federal Reserve Chairman Powell indicated a cautious approach to policy easing in a midday speech on Friday.
- Economic uncertainty due to trade policies and an unexpected increase in the US unemployment rate weighed on stocks despite supportive bond yields from the Fed-friendly Feb payroll report.
- Hawkish Fed comments, US tariff concerns, and weaker Chinese trade data are bearish for stocks. Chances of a rate cut at the next FOMC meeting are at 4%, while overseas markets are lower.
- T-notes rose on a Fed-friendly payroll report, European bond yields fell, and Eurozone GDP was revised upward. ECB member Muller cautioned on rate cuts, with swaps pricing in a 65% chance of a cut in April.
- The Magnificent Seven stocks led market weakness, but chip stocks rallied. Energy stocks surged on higher crude oil prices. Notable movers include The Gap, Walgreens, and HP Enterprise.
- Earnings reports for March 7, 2025, include companies like Advantage Solutions, Genesco, National Beverage, and Valhi. The article provides insights into the market trends and key stock movements for the day.
Read more at Nasdaq: Stocks Rebound After Fed Chairman Jerome Powell’s Speech