The top three equity benchmarks are poised to open higher on Wall Street on Thursday after Federal Reserve Chairman Jerome Powell signaled the central bank was still moving towards an interest rate cut due to trade uncertainties.
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The Dow Jones Industrial Average is expected to rise by 62 points at the open, while the S&P 500 is slated to increase 6.75 points. The Nasdaq, which on Wednesday closed at record highs, is slated to increase 22.50 points.
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After several days of uneven trading activity over concerns that the Federal Reserve would withhold moving forward on the expected cuts, investors were optimistic following Powell’s remarks that the central bank’s outlook for the U.S. economy is weighed down by trade tensions.
Many Federal Open Markets Committee participants “saw that the case for a somewhat more accommodative monetary policy had strengthened,” he said in prepared testimony for the House Financial Services Committee.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 26860.2 | +76.71 | +0.29% |
| SP500 | S&P 500 | 2993.07 | +13.44 | +0.45% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8202.53132 | +60.80 | +0.75% |
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Powell also said a strong June jobs report did not change the central bank’s economic outlook or policy on interest rates. He is scheduled to testify in front of a Senate panel on Thursday.
Meanwhile, investors are eagerly awaiting a July 31 policy meeting to see if the Federal Reserve moves forward with the rate cuts.
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Last month, President Trump and Chinese President Xi Jinping agreed to relaunch trade talks after negotiations fell apart in May. Top White House officials had “constructive” talks with Chinese Vice Premier Liu He and Minister Zhong Shan earlier this week and a face-to-face meeting is possible.
