U.S. Stocks Seeing Continued Strength After Early Advance

Stocks moved mostly higher early in the session and continue to turn in a strong performance in afternoon trading. The major averages are extending the rebound seen in the previous session, with the S&P 500 reaching a new record intraday high.

In recent trading, the Nasdaq and the S&P 500 have reached new highs for the session. The Nasdaq is up 254.51 points or 1.6 percent at 16,286.05, the S&P 500 is up 53.83 points or 1.1 percent at 5,158.59 and the Dow is up 168.44 points or 0.4 percent at 38,829.49.

The extended rebound on Wall Street comes as optimism about the outlook for interest rates continues to inspire traders to get back into the markets following the pullback seen on Monday and Tuesday.

Federal Reserve Chair Jerome Powell told members of Congress on Wednesday that the central bank is likely to begin cutting interest rates later this year.

While Powell also reiterated officials needs “greater confidence” inflation is slowing, traders remain optimistic the Fed will begin cutting rates in June.

Adding to the optimism about interest rates, the European Central Bank lowered its annual inflation forecast while announcing its widely expected decision to leave rates unchanged.

Sector News

Semiconductor stocks continue to see substantial strength on the day, with the Philadelphia Semiconductor Index soaring by 3.5 percent to a record intraday high.

Shares of Nvidia (NVDA) have shot up by 3.6 percent after Mizuho Securities raised its price target on the AI darling to $1,000 per share, while Micron (MU) has surged by3.8 percent after Stifel upgraded its rating on the chipmaker’s stock to Buy from Hold.

Considerable strength also remains visible among oil service stocks, as reflected by the 2.1 percent jump by the Philadelphia Oil Service Index. The strength in the sector comes amid a modest increase by the price of crude oil.

Housing stocks have also shown a strong move to the upside, driving the Philadelphia Housing Sector Index up by 1.8 percent to a record intraday…