US stocks rose Thursday morning as investors weighed in on new unemployment data and prepared for a second day of Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill.
The S&P 500 rose 0.7%, and the Dow Jones Industrial Average added 160 points, or roughly 0.5%. The heavy Nasdaq Composite Index is up 0.9%. In the Previous trading sessionthe three major indices closed in the red but did not change much.
Stocks attempted to maintain this week’s gains after advancing more than 2% to start the holiday’s abbreviated four-day trading period. Last week, the S&P 500 fell 5.8%, its biggest drop since March 2020, marking the benchmark’s second consecutive weekly loss of more than 5%.
US jobless claims remained near a five-month high last week in a temporary sign that the labor market may begin to cool. The Labor Department reported Thursday that applications for unemployment insurance totaled 229,000 for the week ending June 18. Economists surveyed by Bloomberg expected claims to come in at 226,000.
Fed Chairman Powell will be in the spotlight again Thursday when he delivers remarks on monetary policy and inflation on the second day of his meeting with lawmakers.
On Wednesday, the US central bank chief told the Senate Banking Committee in prepared comments that the Fed “deeply committed“To reduce inflation, a slight relaxation of language from last week which indicated that its fight against inflation”Unconditional. “
Powell also acknowledged in his testimony that a recession was a “possibility” and acknowledged that a soft landing would be a “very difficult” achievement in the Fed’s struggle to restore price stability.
“The Fed is late — it’s been late for a while,” Claro Advisors’ Ryan Bellanger told Yahoo Finance Live on Wednesday. “They cut their work for them […] Talk of soft landing is somewhat of a myth.”
earlier this week, BlackRock strategists warned That recession appears inevitable in the Fed’s path forward, arguing that the current rate hike campaign is likely to halt economic growth without necessarily solving the inflation problem.
“The Fed is not looking for a recession, although in our view a recession will be needed if it wants to bring inflation back to 2%,” the company stated.
Other Wall Street heavyweights also ramped up recession talks, with warnings from economists at Citi, Goldman Sachs and Deutsche Bank this week.
Occidental Petroleum (OXY)Berkshire Hathaway stock is up more than 4% at the start of Thursday’s session after Warren Buffett’s Berkshire Hathaway was Acquired another 9.6 million shares Oil giant on Wednesday. Berkshire owns about 152.7 million shares in Occidental, valued at approximately $8.52 billion after the purchase based on the company’s closing price on Wednesday.
aid rites (rad) Shares rose as much as 6% after the drugstore chain reported a smaller first-quarter profit loss than analysts had expected. The company posted an adjusted loss of 60 cents per share, less than the 66 cents per share loss forecast by Bloomberg. Rite Aid also raised its full-year revenue guidance.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed