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U.S. stocks looked set to take a breather early on Thursday after a series of recent highs, as Federal Reserve Chair Jerome Powell pushed back against hopes of a swift rate-cutting cycle. Meanwhile, Bitcoin broke through $100,000 for the first time.
Dow Jones Industrial Average futures were up 25 points, or 0.1%, after the index closed above 45,000 for the first time on record in the previous session. S&P 500 futures were falling 0.1% and Nasdaq 100 futures were losing 0.2%.
Powell emphasized that there is little urgency for the Fed to lower interest rates quickly, given the uncertainty in the inflation outlook and a solid current economic backdrop, in an appearance at the New York Times DealBook Summit.
Federal Reserve Bank of St. Louis President Alberto Musalem also said on Wednesday he sees a greater risk today of easing monetary policy too much, too soon than moving interest rates lower too slowly and not enough.
“Even as Fed speakers leant in a somewhat hawkish direction, US Treasury yields fell across the curve thanks to some weaker than expected data. In particular, the ISM services index was only at 52.1 in November (vs. 55.7 expected), ending a run of 4 consecutive monthly increases,” wrote Deutsche Bank analyst Henry Allen in a research note.
The yield on the benchmark 10-year Treasury note stood at 4.194%, down from a peak of around 4.28% the previous day.
Bitcoin was holding just above $100,000 early on Thursday as traders continue to bet on a positive future for the digital currency under the administration of President-elect Donald Trump.
