U.S. stocks rose again on Thursday, with the S&P 500 (^GSPC) inching closer to record levels as investors wondered how far the Federal Reserve would cut interest rates in September ahead of a key speech by Chairman Jerome Powell.
Both the broader market index and the tech-heavy Nasdaq Composite (^IXIC) rose about 0.5%. The Dow Jones Industrial Average (^DJI) rose 0.2%, after all three indexes closed in the green on Wednesday.
Stocks turned positive after minutes from the Fed’s latest meeting showed several officials open to a rate cut in July, signaling a likely reversal in next month’s policy decision. Growing hopes for lower interest rates have already helped markets pare losses from an early August rout.
The Fed’s symposium in Jackson Hole begins Thursday, with markets on high alert for a possible change in policymakers’ tone when Powell delivers a speech on Friday.
Initial jobless claims rose to 232,000 last week, matching expectations, after the previous week’s reading was revised to 228,000. The data released Thursday morning drew more attention as an official payrolls revision showed the labor market — a key input for policymakers — may have cooled much earlier than previously thought. Signs of stress could play a role in how deeply the Fed cuts rates, with hopes for a 0.5% cut in play.
On the corporate front, shares of Paramount (PARA) rose after media executive Edgar Bronfman Jr. raised his takeover bid to $6 billion. Meanwhile, shares of Snowflake (SNOW) fell as its sales outlook disappointed investor hopes for an AI boost.
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