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US stocks moved higher on Thursday, looking to build on a Wednesday rally fueled by reassuring signals from Federal Reserve Chair Jerome Powell after the central bank held interest rates steady on Wednesday.
The Nasdaq Composite (^IXIC) led the gains, rising about 0.3%, while the Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) popped about 0.2%. All three major averages had initially opened lower.
The Fed’s decision to keep interest rates unchanged on Wednesday was expected on Wall Street, but markets rallied, driven by a sense of relief that prior forecasts for two rate cuts this year held up. Doubts had been rising about the path to rate cuts amid concerns the US economy might buckle under President Trump’s broad plans for tariffs.
Read more: The latest on Trump’s tariffs
In a press conference following the decision, Powell contributed to the good mood. Although the central bank indicated it expects higher inflation and slower economic growth, the Fed chair reassured investors that inflation impacts from tariffs will likely be “transitory” and recession risks remain low.
But Powell’s comments came after the Fed, in updated projections, revised upward its forecast for inflation at the end of this year while sharply lowering its forecast for economic growth. Those broader economic sentiments have been weighing on markets for much of the past two months, with both the benchmark S&P 500 and tech-heavy Nasdaq sliding into correction territory.
For his part, Trump — who has largely refrained from weighing in on Fed policy thus far in a U-turn from his first term — looked set to amp up pressure on the central bank.
“The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” he posted on social media late Wednesday.
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Stocks open lower after Wednesday’s rally
US stocks moved lower on Thursday, failing to build on a Wednesday rally fueled by reassuring signals from Federal Reserve Chair Jerome Powell after the central bank held interest rates steady on Wednesday.
The Nasdaq Composite (^IXIC) led the losses, falling about 1%, while the Dow Jones Industrial Average (^DJI) dropped 250 points, or 0.6%, and the S&P 500 (^GSPC) shed 0.7%
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A $4.5 trillion triple witching gives investors yet another test
Four times a year, a set of options contracts simultaneously expire in an event known as a “triple witching,” which often stokes volatility. The first triple witching of 2025 will take place on Friday.
Bloomberg reports:
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Weekly jobless claims steady in March
Data from the Department of Labor released Thursday morning showed 223,000 initial jobless claims were filed in the week ending March 15, down from 221,000 the week prior and roughly in line with 224,000 economists had expected.
Meanwhile, 1.89 million continuing unemployment claims were filed, up from 1.86 million the week prior. Continuing claims have hovered near a more-than-three-year high for several months now as economists have noted laid-off workers are taking longer to find new jobs.
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Trump starts to turn up the pressure on the Fed
President Trump — who has largely refrained from weighing in on Fed policy so far — seemed to amp up the pressure on the central bank after it held interest rates steady for the second consecutive meeting on Wednesday.
Yahoo Finance’s Ben Werschkul and Jennifer Schonberger report:
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Why this Wall Street analyst still thinks Tesla stock could nearly rise 90%
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Europe stocks fall after ECB says tariffs would lift inflation, weigh on growth
European stocks fell across the board after European Central Bank President Christine Lagarde stated that a 25% tariff on goods imported to the US could raise inflation and lower growth in the bloc.
“In the near term, EU retaliatory measures and a weaker euro exchange rate…could lift inflation by around half a percentage point,” Lagarde told European lawmakers, per Reuters. “The effect would ease in the medium term due to lower economic activity dampening inflationary pressures.”
The pan-European Stoxx 600 (^STOXX) fell 0.7%, while Germany’s DAX (^GDAXI) dropped 1.5%. The CAC (^FCHI) in Paris was 1% lower.
And in London, the benchmark index (^FTSE) was roughly flat as traders awaited the next interest rate decision from the Bank of England, which is expected to hold rates steady.
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Good morning. Here’s what’s happening today.
Economic data: Initial jobless claims (week ending March 15); Philadelphia Business Outlook (March); Leading index (February) Existing home sales (February)
Earnings: Academy Sports and Outdoors (ASO), Darden Restaurants (DRI), FedEx (FDX), Land’s End (LE), Lennar (LEN), Micron (MU), Nike (NKE)
Here are some of the biggest stories you may have missed overnight and early this morning:
The Fed—and economy—can still afford to wait amid tariff uncertainty
Why one analyst is betting on a 90% Tesla rally
Some retirees to get a bump in Social Security benefits next month
Nvidia’s winning formula: Fail fast, innovate faster
SoftBank Group to acquire Ampere Computing in $6.5 billion deal
Lagarde: US tariffs could shrink eurozone growth, spike inflation
Stanford, Harvard grads seek China AI startup jobs
TSMC risks losing lead over Tencent as Asia’s largest company
Copper hits $10,000 in rally fueled by Trump’s tariff threats
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Gold rises to new record high on Fed rate cut news
Gold (GC=F) reached a new all-time high Thursday as the Federal Reserve raised the potential for two interest rate cuts this year, boosting bullion’s appeal as a haven asset.
Reuters reports:
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Copper breaches $10,000 benchmark in tariff push
Copper (HG=F) surged past the $10,000-per-ton mark after weeks of global trade disruptions caused by President Donald Trump’s tariffs pushed prices on the industrial metal.
Bloomberg reports:
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SoftBank Group buys out Oracle and Carlyle Group in $6.5 billion for Ampere Computing
SoftBank Group Corp has announced plans on Wednesday to acquire AI-focused chip startup Ampere Computing in a $6.5 billion deal.
Reuters reports:
