© Reuters.
Investing.com– The S&P 500 and Nasdaq hit record highs on Thursday, led by the technology sector, as Federal Reserve Chair Jerome Powell reiterated that rate cuts are on the table this year, raising investor optimism that global central banks are expected to begin easing their rates. monetary policy measures in June.
At 15:54 CET (18:58 GMT), the price rose 154 points, or 0.4%, rose 1.1% and reached an all-time high of 5,165.62. It jumped 1.6% and had previously hit a record high of 16,309.02.
Powell reiterates upcoming rate cuts; ECB signals rate cuts
In his second day of testimony before Congress, Federal Reserve Chair Jerome Powell said the Fed is “not far off” from achieving the confidence needed to cut interest rates this year, reiterating similar comments from the previous day. .
Optimism that major central banks will cut rates as soon as June is gaining strength after the European Central Bank kept rates steady but lowered its inflation forecast, suggesting a faster pace of progress than before. .
European sovereign bonds, which trade inversely to yields, jumped on the news, boosting short-term US Treasury yields, with the 2-year Treasury yield falling 4 basis points to 4 .52%.
Kroger Takes Advantage of Bullish Guidance; Victoria's Secret plummets after weak guidance
Kroger (NYSE 🙂 shares rose 9% after the food retailer forecast full-year sales and profits well above Wall Street estimates due to increased demand for food in its stores as more Americans prepare meals at home. house in the midst of persistent inflation.
Victoria's Secret (NYSE:) fell 31% after the lingerie retailer forecast weaker annual sales following a slow start to the year as shoppers in its key North American market shifted to cheaper options.
Cybersecurity company OneSpan (NASDAQ rose 23% on consensus-beating quarterly earnings, while American Eagle Outfitters (NYSE:) rose 3% after the clothing retailer beat Wall Street expectations for the fourth quarter on Thursday as consumers snapped up full-price items during the crucial U.S. holiday shopping season.
New York Community Bank the rebound continues
New York Community Bancorp (NYSE:) continued its recovery from the previous day, rising 7% after credit rating agency Fitch Ratings affirmed the real estate lender at BB+, citing the recent $1 billion cash injection.
New York Community Bancorp announced Wednesday that it had raised just over $1 billion by selling shares and warrants to a group of investors at $2 a share. While the deal provides a much-needed cash infusion (amid concerns about the bank's exposure to bad real estate loans), the sale is “tremendously dilutive to common shareholders,” Wedbush said in a note.
Monthly jobs report in focus
The number of Americans filing for unemployment benefits remained unchanged last week at 217,000, in a further sign of easing in the labor market just a day before the all-important nonfarm payrolls report.
The United States fell by 26,000 in January, and hiring slowed as labor market conditions continue to gradually improve.
This comes ahead of the crucial release, scheduled for Friday, which will offer further signals on the strength of the US economy.
(Peter Nurse and Ambar Warrick contributed to this article.)
