U.S. stocks were on track to hit new records on Wednesday, with major indexes rising as traders digested remarks from Fed Chairman Jerome Powell, who is due to continue testifying on Wednesday.
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U.S. stocks rose on Wednesday, on track to hit new records, with major stock indexes rising after the open but bond yields falling.
Traders are feeling optimistic after Federal Reserve Chairman Jerome Powell gave Congress some dovish guidance on interest rate cuts on Tuesday.
Powell said more favorable inflation data would give the Fed more confidence that inflation is heading toward the central bank’s 2 percent target.
“Reducing policy restraints too late or not enough could weaken economic activity and employment too much,” he added.
Fed-funds futures showed interest-rate outlooks little changed after Powell’s testimony. Investors are still pricing in about two rate cuts by the end of the year, but expectations of three cuts by December have increased slightly, according to the CME FedWatch tool.
“Having made ‘substantial progress’ in containing inflation has certainly brought the Fed closer to cutting rates,” Art Hogan, chief market strategist at B. Riley Wealth, said in a note Wednesday.
Powell is scheduled to deliver the second part of his testimony before the Senate Banking Committee on Wednesday, while markets will also be focusing on Thursday’s inflation report, which will be crucial when FOMC members meet at the end of the month to discuss their next policy steps.
Below are U.S. stock indexes as of the start of trading at 9:30 a.m. on Wednesday.
Here’s something else that happened today:
Commodities, Bonds and Cryptocurrencies:
West Texas Intermediate crude oil rose 0.06% to $81.46 a barrel. International benchmark Brent crude oil fell 0.05% to $84.62 a barrel. Gold rose 0.63% to $2,378 an ounce. The 10-year Treasury yield fell 1 basis point to 4.283%. Bitcoin rose 1.3% to $58,014.
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