tl;dr
Stock index futures moved up on Thursday, while yields inched higher, a day after Federal Reserve Chair Jerome Powell reaffirmed that there is still a possibility for rate cuts later this year and reassured that recent data did not "materially" change the overall economic picture. Dow futures (INDU...
Stock index futures moved up on Thursday, while yields inched higher, a day after Federal Reserve Chair Jerome Powell reaffirmed that there is still a possibility for rate cuts later this year and reassured that recent data did not "materially" change the overall economic picture. Dow futures (INDU) 0.3%, Nasdaq 100 futures (NDX: IND) 0.5%, and S&P 500 futures (SPX) 0.3%. "Markets recovered their poise over the last 24 hours, as investors were relieved after Powell stuck to his recent views on the economic outlook," said Deutsche Bank's Henry Allen. Powell, however, reiterated the need for more evidence of inflation moving sustainably down toward 2% before interest rate cuts are implemented. "Powell's speechwriters did not say much controversial, keeping rate cut expectations alive. Media comment around this has tended to sensationalize - inflation is branded as sticky (it is not), and above target (moot point)," said UBS' Paul Donovan. Rates ticked higher, with the 10-year Treasury yield (US10Y) up 2 basis points at 4.37% and the 2-year yield (US2Y) up 2 basis points at 4.70%. On the economic front, the Initial Jobless Claims report is expected to hit before the bell. Economists have forecast a rise to 213K. International Trade in Goods and Services data for February is also due at the same time, with economists expecting it to come at -$66.90B. "U.S. February trade data is due. Despite the headlines, there is not much evidence of trade patterns being meaningfully disrupted by shocks. The headline numbers hint at what U.S. consumers may be doing with goods demand, but the detail (who is actually selling to the U.S.) is where things get interesting," Donovan said. Several Fed officials are also slated to speak later in the day.
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