US stocks surged on Thursday, maintaining a positive trajectory ahead of Federal Reserve Chair Jerome Powell’s second day of testimony. The tech sector led the way, with the Nasdaq Composite gaining 1.4% and the S&P 500 reaching record highs with a nearly 1% increase. The Dow Jones Industrial Average also rose by 0.5%.
Investors have seen a boost in the past two sessions as Powell addressed lawmakers on the economy and monetary policy without any negative surprises. Powell reiterated that the Fed is not rushing to ease policy but signaled that rate cuts are likely later this year.
On Thursday, during his testimony before the Senate Banking Committee, Powell reiterated the central bank’s stance on rate cuts, contingent on inflation data continuing to show a cooling trend.
In economic data released Thursday, jobless claims remained unchanged at 217,000 for the week ending March 2, with continuing claims slightly increasing to just above 1.9 million. The highly anticipated non-farm payroll report is set for release on Friday morning.
Gold prices continued to rise for the fifth consecutive day, breaking above $2,160 per ounce, driven by expectations of a rate cut fueling a record-setting rally.
In the corporate sector, shares of Victoria’s Secret plummeted over 25% after the company’s sales guidance fell short of expectations.
Overall, the market remains optimistic as investors await further developments from Powell’s testimony and economic data releases.