© Reuters.
Investing.com– U.S. stocks rose Thursday, continuing the previous session’s positive tone as investors awaited more comments from Federal Reserve Chair Jerome Powell over the scope and scale of potential interest rate cuts.
By 09:45 ET (14:45 GMT), the was up 175 points, or 0.5%, traded 27 points, or 0.5%, higher and climbed 80 points, or 0.5%.
Powell to speak once more
Fed Chair Jerome Powell is set to continue his two-day testimony before Congress later Thursday, this time appearing in front of the Senate.
His comments Wednesday did fuel optimism that the Fed will eventually cut rates this year from more than two-decade highs this year, but he also flagged that policymakers wanted to see further evidence that inflation was sustainably easing toward the central bank’s stated 2% target before rolling out any cuts.
This view was backed up by Fed Governor Michelle Bowman, who said earlier Thursday that the U.S. economy is not at the point where the Federal Reserve should reduce interest rates.
“While the current stance of monetary policy appears to be at a restrictive level that will bring inflation down to 2% over time, I remain willing to raise the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed,” Bowman said in remarks to a New Jersey Bankers group.
However, data released earlier Thursday showed that the number of Americans filing for unemployment benefits was unchanged last week at 217,000, as the labor market continued to gradually ease.
U.S. fell 26,000 in January, with hiring declining as labor market conditions continue to gradually ease.
This comes ahead of the crucial release, due Friday, which will offer more cues of the strength of the U.S. economy.
Victoria’s Secret slumps after weak guidance
In corporate earnings, Kroger (NYSE:) stock rose 6% after the food retailer forecast annual sales and profit largely above Wall Street estimates on higher demand for groceries at its stores as more Americans prepare meals at home amid persistent inflation.
Victoria’s Secret (NYSE:) slid 26% after the lingerie retailer forecast weaker annual sales following a sluggish start to the year as shoppers in its key North America market switch to cheaper options.
Cybersecurity firm OneSpan (NASDAQ:) surged 26% on consensus-beating quarterly earnings, while American Eagle Outfitters (NYSE:) soared 10% after the apparel retailer topped Wall Street expectations for the fourth quarter on Thursday, as consumers snapped up full-price items during the crucial holiday shopping season in the United States.
New York Community Bancorp (NYSE:) extended a recovery, rising 11% after the struggling regional raised over $1 billion in new capital.
Crude hands back previous session’s gains
Oil prices retreated Thursday, handing back the recent gains after upbeat Chinese trade data and a small-than-expected rise in U.S. crude inventories.
By 06:45 ET, the futures traded 0.7% lower to $78.56 a barrel, while the Brent contract dropped 0.6% to $82.50 a barrel.
Data released earlier Thursday showed that China’s grew more than expected in the first two months of 2024, providing hope that global trade is turning a corner.
Both benchmarks gained around 1% on Wednesday after U.S. crude rose for a sixth week in a row, building by 1.4 million barrels, below the 2.1 million-barrel rise predicted.
Additionally, gold futures fell 0.1% to $2,155.70/oz, falling back from a new record high, while EUR/USD edged higher at 1.0901.
(Ambar Warrick contributed to this article.)