Stocks could hit new record highs Thursday


Stocks could hit new record highs Thursday

Futures are pointing at a higher open, with those for the Dow (INDU) are up 0.3%, while those for the S&P 500 (SPX) and the Nasdaq Composite (COMP) are up 0.2% and 0.1%, respectively.

Stock futures came down from previous highs following the release of consumer price index data for June. Although the headline number of 1.6% came in as expected, core inflation rose slightly to 2.1%, versus the expected 2%.

In remarks before the Financial Services Committee on Wednesday, Powell noted that inflation continued to be below the central bank’s 2% target.

In other data, jobless claims for the week ended July 6 came in slightly lower than expected.

Nonetheless, the market could rally to new highs. The Nasdaq closed at a new all-time high of 8,203 points on Wednesday, surpassing a record from last week.

The S&P 500 is on track to climb to a fresh all-time higher on Thursday, having ended just some three points below the record it set on July 3.

The Dow could also hit a new all-time high, after it closed 0.4% below last week’s record on Wednesday.

Powell cited uncertainties about trade and the global economy as threats to US economic growth during his Wednesday testimony. The market read his comments to mean that an interest rate cut could come at the next central bank meeting on July 31. Powell also noted that inflation continued to be below target in the United States.

At 10 am ET, Powell will appear before the Senate Banking Committee, where his two-day bi-annual testimony will conclude.


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