|
The
S&P 500 and Nasdaq closed higher on Wednesday after data showed
the U.S. services industry growth slowed further in March and as
market participants assessed statements from Fed officials,
including from Chair Jerome Powell.
While policymakers generally agreed that rates could fall later
this year, Powell said this would happen only when they "have
greater confidence that inflation is moving sustainably down" to
the Fed's 2% target.
"What he (Powell) says matters, even if the inflation and labor
market data has been surprising on the upside, the prospect of
interest rate cuts are still in play," Kathleen Brooks, research
director at XTB, wrote in a note.
Investors have been circumspect about the timings of the rate
cuts, given mixed reports on the economic performance.
Equities fell earlier in the week on the back of some strong
economic reports, including manufacturing activity and job
openings data that raised questions about the three rate cuts
widely priced in for the year.
Money markets are currently seeing a near 59% chance of at least
a 25 basis point rate cut in June, according to the CME Group's
FedWatch tool.
Focus will also be on Fed policymakers, including Richmond Fed
President Thomas Barkin, a voting member, and his Cleveland
counterpart Loretta Mester, for further clues on monetary
policy.
On the data front, markets will eye the initial jobless claims
numbers for the week ended March 30, due at 8:30 a.m. ET, before
the key nonfarm payrolls data on Friday.
At 5:35 a.m. ET, S&P 500 E-minis were up 16.5 points, or 0.31%,
with 80,353 contracts changing hands, Nasdaq 100 E-minis were up
82.75 points, or 0.45%, Dow E-minis were up 111 points, or 0.28%
Some megacap growth stocks edged up in premarket trading, with
Meta Platforms, Amazon.com and Nvidia up between 0.5% and 1.3%.
Among individual stocks, Levi Strauss jumped 8.3% after the
apparel maker raised its annual profit forecast, citing savings
from its recent cost-cutting measures and fewer discounts.
Micron Technology gained 1.1%, after rising about 4.3% in the
previous session to close at a record high.
(Reporting by Shristi Achar A in Bengaluru; Editing by Anil
D'Silva)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
