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Wall Street had a rip-roaring day on Thursday, with the S&amp;P 500 and Nasdaq composite shooting up, marking a significant day of gains largely fueled by tech and growth stocks. This bullish trend was powered by the growing anticipation of Federal Reserve rate cuts within the year. Specifically, the tech sector, with a spotlight on chip companies benefiting from artificial intelligence demand, saw the Philadelphia Semiconductor index leap to a new zenith.<a href="https://www.reuters.com/markets/us/nasdaq-sp-500-futures-inch-up-ahead-more-economic-data-powell-testimony-2024-03-07/" rel="noopener noreferrer nofollow" target="_blank"> </a>
<a href="https://www.cryptopolitan.com/jerome-powell-addresses-congress/" data-type="post" data-id="479311" rel="noopener noreferrer nofollow">Fed Chair Jerome Powell’s</a> recent comments to a U.S. Senate committee sparked a wave of optimism among investors. Powell hinted that the central bank was nearing confidence that inflation would decrease towards its 2% target, a scenario that could open the door for rate reductions. These remarks came as a boost, especially considering the cautious atmosphere preceding his Congressional testimonies, which began the previous Wednesday.
Despite the unchanged number of Americans filing for new unemployment benefits, indicating a steady labor market, various employment data suggested a slight softening yet a still resilient jobs scenario. Anthony Saglimbene, Ameriprise Financial’s Chief Market Strategist, captured the sentiment well, noting, “Powell essentially left rate cuts on the table for this year. That’s what markets wanted to hear.” This anticipation, coupled with recent employment data, painted a picture of a slowing but solid employment landscape.
On the trading floor, both the Dow Jones Industrial Average and the Nasdaq Composite marked gains, with the latter flirting with a record high before settling with a commendable upturn. This positive momentum underscored a broader market optimism, as John Augustine from Huntington Private Bank observed, “Everybody is waiting for something bad to happen but nothing bad has happened to the economy, markets, earnings, and policy.”
The market’s gains were not uniformly spread, however. The S&amp;P 500 sectors saw varied performances, with technology and communications services battling for the top spot in terms of growth. Technology stocks, in particular, experienced a huge boost, thanks to contributions from giants like Meta and Nvidia, which saw their shares increase by 3.2% and 4.5%, respectively.
Not all stories were of triumph, though. Victoria’s Secret faced a downturn after projecting a weaker-than-expected annual forecast, losing nearly 30% of its share value. In contrast, Kroger Co witnessed a surge in its share price following an optimistic annual sales and profit forecast, hinting at higher grocery demand and effective cost management strategies.
The day’s trading volume was vibrant, with advancing issues on the NYSE outpacing decliners by a significant margin. This trend was mirrored on the Nasdaq, albeit at a narrower ratio. The S&amp;P 500 and Nasdaq both celebrated numerous new highs, though the Nasdaq also noted a considerable number of new lows, painting a complex picture of market dynamics.
With 11.19 billion shares traded across U.S. exchanges, activity was slightly below the recent average, yet the day’s dealings marked a notable chapter in Wall Street’s ongoing narrative. The mix of anticipation for policy shifts, investor response to economic and employment data, and individual stock performances underlines the multifaceted nature of market movements.

Why is Wall Street on such a high today?

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