Investors have been closely observing the economic indicators and statements from Federal Reserve Chair Jerome Powell. His remarks have had a significant impact on the financial markets. The S&P 500 Futures saw a slight fall to 6,095.50 points, while the Nasdaq 100 Futures dropped 0.1% to 21,515.50 points by 18:53 ET (23:53 GMT), and the Dow Jones Futures steadied at 45,099.0 points. Powell stated that the economy is in a better position than it was in September when the Fed began cutting interest rates, enabling the Fed to be more cautious in considering further easing. At a New York Times event, he also highlighted the progress made in bringing down inflation, although his comments suggested support for a slower pace of rate cuts. These are likely to be his last public statements before the Fed's meeting on December 17 and 18, where a 25-basis-point interest rate cut is widely expected.

Uncertainty in the Long-Term Outlook

Markets are facing uncertainty in the long term due to the resilience of the U.S. economy, which could keep inflation sticky. President-elect Donald Trump's protectionist trade policies are also expected to have a long-term impact on inflation. However, investors have latched onto the prospect of a stronger economy, leading to broad-based gains across Wall Street. They were relieved that Powell did not downplay the possibility of a December cut. The focus now is on the upcoming nonfarm payrolls data for November, which is due on Friday. This reading is expected to show resilience in the labor market and will likely influence the outlook for U.S. interest rates.

Wall Street's Recent Performance

Wall Street indexes reached record highs on Wednesday, driven by a persistent rally in major technology stocks. Salesforce Inc (NYSE:CRM) surged 11%, which was a key driver of gains. Market darling NVIDIA Corporation (NASDAQ:NVDA) also saw a sustained rally. The S&P 500 rose 0.6% to a record high of 6,086.49 points, while the NASDAQ Composite rose 1.3% to a peak of 19,732.87 points. The Dow Jones Industrial Average ended up 0.7% at a record high of 45,014.04 points. Since Trump's election victory in early-November, Wall Street has been on a tear, and analysts expect more gains as 2024 draws to a close. The positive earnings from Salesforce and the sustained rally in NVIDIA have contributed to the overall upward trend. Investors are closely monitoring these trends and their implications for the future of the market.