(Reuters) – The New York Stock Exchange opened higher on Thursday, reassured by comments from the chairman of the Federal Reserve (Fed), who on Wednesday maintained the scenario of a rate cut later in the year.
In early trading, the Dow Jones index gained 208.27 points, or 0.54%, to 38,869.32 points and the broader Standard & Poor’s 500 rose 0.60% to 5,135.62 points.
The Nasdaq Composite takes 0.73%, or 116.34 points, to 16,147.88 points.
On Wednesday before the US Congress, Jerome Powell reinforced the prospect of a rate cut this year if the economy behaves generally as expected and if the slowdown in inflation is confirmed.
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The words of Powell, who will address US senators on Thursday, notably fuel expectations for a cut in interest rates in June.
Investors also learned on Thursday that the number of weekly jobless claims remained stable in the United States, with the job market continuing to gradually relax, a further encouraging sign to support the indices.
The Fed’s Beige Book also indicated on Wednesday that the tightening of the labor market had eased further in February, while the monthly employment report for February, due Friday, is expected to provide additional details on these developments.
In terms of values, Victoria’s Secret lost 27%, the company having said it expected quarterly and annual turnover lower than expectations, while consumers remain under pressure. JP Morgan also lowered its recommendation on the stock from “neutral” to “underweight”.
The Eli Lilly laboratory fell 1.95% after the presentation of Novo Nordisk’s highly anticipated treatment against obesity.
Nvidia and Micron Technology rose 1.6% and 2.37% respectively and extended the gains recorded during the previous session.
(Written by Diana Mandiá)
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