(Reuters) – S&P 500 and Nasdaq futures edged higher on Thursday ahead of more economic data and commentary from Jerome Powell after the Federal Reserve chair stuck to the script overnight by saying the central bank still expects to cut rates later this year.
Powell, in his prepared remarks to the House panel on Wednesday, said rate reductions will “likely be appropriate” later this year, “if the economy evolves broadly as expected” and once officials gain more confidence in inflation’s steady decline.
Wall Street closed higher with rate-sensitive technology stocks and chip stocks leading gains in the previous session.
All eyes will be back on Powell who is set to wrap up his two-day testimony on Thursday.
Investors also awaited jobless claims data, which, along with the crucial nonfarm payrolls report on Friday, could provide further details on the strength of the U.S. labor market.
Signs of persistent strength in the labor market could make it difficult for the Fed to start cutting interest rates in June as currently envisaged by financial markets.
At 05:02 a.m. ET, Dow e-minis were down 34 points, or 0.09%, S&P 500 e-minis were up 1.75 points, or 0.03%, and Nasdaq 100 e-minis were up 34.75 points, or 0.19%.
Electric carmaker Tesla lagged megacap growth and technology peers in premarket trading, down 0.6%.
Chip stocks such as Nvidia and Micron Technology gained 1.4% and 3.1%, respectively, and were set to extend their rally from the previous session.
Lingerie maker Victoria’s Secret & Co dropped 32% on weak annual and first-quarter forecasts.
Eli Lilly shed 1.7% after rival Novo Nordisk said early trial data for its highly anticipated experimental drug, amycretin, showed that participants had a weight loss of 13.1% after 12 weeks.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)