Stock market today: S&P 500, Nasdaq rise as rate-cut conviction runs high
08/22/2024 20:45
The market is weighing how deeply the Federal Reserve could cut interest rates in September on the eve of a key speech by Jerome Powell.
US stocks resumed gains on Thursday with the S&P 500 (^GSPC) inching closer toward record levels as investors weighed how deeply the Federal Reserve might lower interest rates in September on the eve of a key speech by Chair Jerome Powell.
Both the broader market index and the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.5%. The Dow Jones Industrial Average (^DJI) was up 0.2%, after the three indexes closed in the green on Wednesday.
Stocks took a positive tone after minutes from the Fed's last meeting showed several officials were open to a July rate cut, signaling a pivot is likely in next month's policy decision. Mounting hopes for lower rates have already helped markets recoup losses from an early August rout.
The Fed's Jackson Hole symposium kicks off Thursday with the market on high alert for any shift in tone from the policymakers when Powell speaks at the event on Friday.
Initial jobless claims jumped to 232,000 last week, matching expectations, while the prior week's reading was revised up to 228,000. The data released on Thursday morning was in higher focus given an official revision to payrolls showed the labor market — a key input for policymakers — may have been cooling long before initially thought. Signs of stress could factor into how deeply the Fed cuts rates, with hopes for a 0.5% reduction in play.
On the corporate front, Paramount (PARA) shares rose after media executive Edgar Bronfman Jr. sweetened his takeover bid to $6 billion. Meanwhile, Snowflake (SNOW) stock sank as its sales outlook disappointed investors' hopes for an AI boost.
Live1 update
Stocks edge higher as Fed's Jackson Hole kicks off
Stocks rose slightly on Thursday with the S&P 500 inching closer towards record levels as the investors look for clues from the Fed's Jackson Hole symposium on the depth of the likely interest rate cut expected next month.
The S&P 500 (^GSPC) rose 0.3% while the tech-heavy Nasdaq Composite (IXIC) rose 0.5%. The Dow Jones Industrial Average (^DJI) was up 0.2%, after the three indexes closed in the green on Wednesday.
In early trading the S&P 500 was less than 1% away from touching its July all-time intraday high.
The Fed's Jackson Hole symposium kicks off Thursday with investors on high alert for any shift in tone from the policymakers when Powell speaks at the event on Friday.
Minutes from the Fed's last meeting showed several officials were open to a July rate cut, solidifying the probability of a pivot in September.
Hopes for lower rates have already helped markets recoup all of its losses from an early August rout during a stunning rebound.
Nvidia (NVDA) has been one of the biggest winners of that bounc. On Thursday the stock gained more than 1% following a bullish note from Citi analysts. Wall Street firms have recently reiterated their Buy ratings ahead of the AI chip giant's quarterly results next week.
Nvidia shares have gained roughly 30% since their August lows. The stock is about $10 away from all-time closing high in June.
