Stock Market News Today: U.S. Futures Rise as Investors Await Powell's Testimony

Tech Sector Leads Gains Ahead of Federal Reserve Chair's Second Testimony

Mar 7, 2024 - 07:58
Mar 7, 2024 - 07:58
Stock Market News Today: U.S. Futures Rise as Investors Await Powell's Testimony
Stock Market News Today: U.S. Futures Rise as Investors Await Powell's Testimony

U.S. stock futures edged higher on Thursday, maintaining a positive outlook ahead of Federal Reserve Chair Jerome Powell's second day of testimony, which continues to be closely monitored by investors.

Leading the gains, Nasdaq 100 futures (^NDX) climbed by 0.4%, while S&P 500 futures (^GSPC) saw a modest increase of 0.2%. However, futures on the Dow Jones Industrial Average (^DJI) hovered near the flatline, following a session where all three indexes closed higher.

Market sentiment remained buoyant as investors evaluated Powell's initial testimony on the economy and monetary policy, which lacked any negative surprises. Powell reiterated the Fed's stance of maintaining current policy measures, although he hinted at potential rate cuts later this year.

In parallel, gold prices (GC=F) extended their rally for the fifth consecutive day, surpassing $2,060 amid expectations of imminent rate cuts, further boosting the precious metal's record-breaking rally.

Attention now turns to Powell's Senate appearance, where investors anticipate further insights into the timing of potential rate cuts. Additionally, updates on consumer credit and jobless claims, scheduled for later, will influence market sentiment ahead of the crucial monthly jobs report on Friday.

In corporate news, Victoria's Secret (VSCO) shares plummeted over 29% in premarket trading after the company's sales guidance failed to meet expectations.

Deutsche Bank Bullish on Bitcoin Amid Halving Event

Meanwhile, Deutsche Bank released a note highlighting five reasons why bitcoin prices could continue to surge. Notably, the investment bank emphasized the potential impact of April's bitcoin halving event, citing historical data that showed significant price increases leading up to previous halving events.

The bank's analysis highlighted:

"In the 30 days preceding the November 2012 halving, prices rose by 5%. A more substantial 13% gain was observed ahead of the July 2016 event. Most recently, there was a notable 27% price increase in the month preceding the May 2020 halving."

Investors are closely monitoring this trend, as illustrated by a helpful timeline chart demonstrating historical price movements surrounding bitcoin halving events.

Also Read: Stock Market Dips as Nasdaq Falls and Bitcoin Hits New Highs

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