U.S. stock futures rose on Thursday, maintaining a positive outlook ahead of Federal Reserve Chair Jerome Powell’s second day of testimony, which investors are closely watching.
Leading the gains, Nasdaq 100 futures (^NDX) rose 0.4%, while S&P 500 futures (^GSPC) saw a modest 0.2% gain. However, Dow Jones Industrial Average (^DJI) futures held near the flat line, following a session in which all three indices closed higher.
Market sentiment remained upbeat as investors assessed Powell’s initial testimony on the economy and monetary policy, which lacked any negative surprises. Powell reiterated the Federal Reserve’s stance of maintaining current policy measures, although he hinted at possible rate cuts later this year.
In parallel, gold prices (GC=F) extended their rally for the fifth consecutive day, surpassing $2,060 amid expectations of imminent rate cuts, further fueling the precious metal’s record rally.
Attention now turns to Powell’s Senate appearance, where investors anticipate more information on the timing of potential rate cuts. Additionally, updates on consumer credit and jobless claims, expected later, will weigh on market sentiment ahead of Friday’s crucial monthly jobs report.
In corporate news, shares of Victoria’s Secret (VSCO) plunged more than 29% in premarket trading after the company’s sales guidance fell short of expectations.
Deutsche Bank Bullish on Bitcoin Amid Halving Event
Meanwhile, Deutsche Bank published a note highlighting five reasons why bitcoin prices could continue to rise. In particular, the investment bank emphasized the potential impact of the April bitcoin halving event, citing historical data that showed significant price increases leading up to previous halving events.
The bank’s analysis highlighted:
“In the 30 days before the November 2012 halving, prices increased by 5%. A more substantial 13% increase was seen before the July 2016 event. More recently, there was a notable 27% price increase in the month before the May 2020 halving.”
Investors are following this trend closely, as illustrated by a useful chronological chart showing historical price movements around bitcoin halving events.
Also read: Stock Market Falls as Nasdaq Falls and Bitcoin Hits New Highs