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US STOCKS-Wall St rises after Powell fuels hopes for rate cuts this year
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US STOCKS-Wall St rises after Powell fuels hopes for rate cuts this year
Mar 6, 2024 12:17 PM

*

Private payrolls rise less than expected in Feb - ADP

*

Fed's Powell still expects rate cuts later this year

*

US job openings fall marginally in January

*

Indexes up: Dow 0.12%, S&P 0.51%, Nasdaq 0.67%

(Updates prices at 02:23 p.m ET/ 1923 GMT)

By Sinéad Carew and Bansari Mayur Kamdar

March 6 (Reuters) - Wall Street's three major indexes

rose on Wednesday after Federal Reserve Chair Jerome Powell

reinforced expectations that the U.S. central bank would reduce

its benchmark interest rate this year.

Powell said on Wednesday he still expected the Fed to cut

rates and that the U.S. economy appeared nowhere near a

recession although he shied away from committing to a timetable

for rate cuts as progress on inflation was not assured.

In prepared remarks ahead of his congressional testimony,

Powell said inflation had "eased substantially" since hitting

40-year highs in 2022, but that policymakers still needed

"greater confidence" in its decline before rate cuts.

"There were no surprises coming out of his testimony or any

more hawkish overtones than the market had expected," said Mark

Luschini, chief investment strategist at Janney Montgomery Scott

in Philadelphia, pointing to Powell's reassurance that rates

would not be hiked further and would likely be cut.

Also on Wednesday, data showed U.S. private payrolls

increased slightly less than expected in February.

The Job Openings and Labor Turnover Survey (JOLTS) showed

job openings fell marginally in January, while hiring declined

as labor market conditions continued to gradually ease.

"The number of job openings shriveled a bit, but are still

quite healthy and indicative of a labor market that is still

looking pretty stout," said Luschini. "It fits the Goldilocks

narrative that's become consensus."

February's nonfarm payrolls report due on Friday will offer

further clarity on the state of the labor market.

At 2:23 p.m. ET, the Dow Jones Industrial Average

rose 48.13 points, or 0.12%, to 38,633.32. The S&P 500

gained 25.80 points, or 0.51%, at 5,104.45 and the Nasdaq

Composite added 107.45 points, or 0.67%, at 16,047.04.

Wall Street indexes had lost more than 1% on Tuesday with

weakness in megacap stocks and as investors anxiously awaited

Powell's comments.

Nine of the 11 major S&P 500 industry sectors were in the

green, led by rate-sensitive information technology stocks

, which were up 1%.

Chip companies outperformed the broader market after

underperforming on Tuesday, with the Philadelphia semiconductor

index adding 2.7%.

Tesla extended losses for the third straight

session, down 2%. Baird said the electric vehicle maker's

first-quarter earnings were at risk, suggesting delivery

estimates still need to go lower.

U.S.-listed shares of China's JD.com ( JD ) advanced 16.7%

after the e-commerce group reported fourth-quarter revenue above

estimates and enlarged its share repurchase program.

Shares of cryptocurrency-linked companies gained, with

Coinbase Global ( COIN ) adding 9.8% and MicroStrategy ( MSTR )

rising 17.5% after tumbling in the previous session.

CrowdStrike Holdings ( CRWD ) soared 11% after the company

forecast annual results above Wall Street estimates, lifted by

strong enterprise spending on cybersecurity to counter rising

online threats. However, rival Palo Alto fell 4% after

the report.

Advancing issues outnumbered decliners by a 2.63-to-1 ratio

on the NYSE, where there were 442 new highs and 52 new lows.

On the Nasdaq 2,552 stocks rose and 1,661 fell as advancers

outnumbered decliners by about a 1.54-to-1 ratio. The S&P 500

posted 52 new 52-week highs and four new lows while the Nasdaq

recorded 208 new highs and 104 new lows.

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