US stocks rose on Wednesday and came close to setting a new record. Primary averages were higher after the opening bell, while bond yields fell.
Traders felt positive after Federal Reserve Chair Powell presented Congress with a slightly dovish forecast on cuts on Tuesday.
More positive knowledge about inflation would boost the Fed’s confidence that inflation is headed toward the central bank’s 2% target, Powell said.
“Reducing policy tightness too late or insufficiently can unduly weaken economic activity and employment,” he added.
Fed budget futures showed the outlook for rates remained unchanged after Powell’s testimony. Investors expect about two rate cuts through the end of the year, even though bets on three rate cuts through December have risen slightly, according to CME FedWatch.
“The Federal Reserve is prepared to cut rates because of the ‘tremendous progress’ that has been made in controlling inflation,” Art Hogan, lead market strategist at B, said in a statement. Riley Wealth. note on Wednesday.
Powell is expected to deliver the second part of his testimony before the Senate Banking Committee on Wednesday. Meanwhile, markets are also keeping an eye on Thursday’s inflation report, which will be held when FOMC members meet at the end of the month to discuss their next policy move.
This is where the U. S. indices were. The U. S. Embassy is a while after the opening bell at 9:30 a. m. Wednesday:
Here’s what today:
In commodities, bonds and cryptocurrencies:
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