No Fed Rate Cuts Help Boost Stocks

The stock market indexes closed high on Thursday after the US Federal Reserve refused to schedule interest rate cuts.

Timothy St. John•Friday, March 8, 2024•2 min read

On Thursday, the major stock indexes closed up after testimony from the Federal Reserve revealed that no rate cuts would be enacted just yet.

Federal Reserve Chairman Jerome Powell said in testimony before Congress that the inflation rate was not where the central bank wanted it to be right now. The bank is waiting for inflation to make more progress toward 2% before any interest rate cuts would be scheduled.

That is good news for the stock markets, which closed on a good note at the end of trading for Thursday. The Dow Jones closed up 0.34%, followed by an increase of 1.03% for the S&P 500. The biggest gain occurred over on the Nasdaq Composite, with an increase of 1.51%.

As the Fed continues to hold off on rate cuts, the stock market is expected to enjoy a small boost from that. There may still be interest rate cuts to come later on in the year, as the inflation rate decreases and the US economy keeps on recovering.

New Earnings Reports Move Stocks

Samsara Inc climbed 3.03% yesterday after the company’s earnings report was released. The company produces interconnected sensor systems, and the earnings report showed that they surpassed earnings estimates for the fourth quarter.

Broadcom had a positive earnings report as well, but the chip maker did not earn enough to make investors happy, and their stock fell slightly following the report. By the close of trading on Thursday, however, the company’s stock had gained 4.22%.

Costco posted a decent sales report and yet closed down 3.96%. However, the stock has gained about 19% for the year and has remained mostly bullish in recent weeks.

Healthcare company Ainos is one of the big movers this week, with a gain of 167% after volatile trading took place over the last few days. Healthcare and tech stocks are driving most of the market movement right now, so watch for new earnings reports for those stocks in particular.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.