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
