Stock Market Today: Stocks pull ahead on rate-cut hopess

11:25 a.m. ET

Rate cuts ahead?

Stocks were rising late Thursday morning after two huge rallies on Tuesday and Wednesday. 

The rally catalyst: Possible rate cuts.

Two Fed officials said Thursday they could see cutting rates if the original Trump tariff levels are reinstated and employers start cutting staff, Christopher Waller, a Fed governor, told Bloomberg Television on Thursday. 

Beth Hammack, president of the Federal Reserve Ban of Cleveland, told CNBC the central bank could move on rates as early as June if it has clear evidence of the economy’s direction.

The CME FedWatch tool suggests a rate cut in June and subsequent cut at the end of July and September. 

At 11:25 a.m. ET, the Standard & Poor's 500 Index, meanwhile, was up 1.4% at 5,450. The Nasdaq Composite Index has risen nearly 300 points, or 1.8% at 17,011. The Dow Jones Industrial Average had opened lower but was at 39,876, up 269 points.

Market ignores continued tariff uncertainty

There was continued uncertainty about the status of tariff disputes between the United States and China.  

The Trump Administration had insisted Wednesday that lower level staff were talking to their Chinese counterparts in Washington, D.C. 

But an official in China said Thursday they were not holding talks with the United States about easing trade tensions between the superpowers. "Any claims about progress in China-U.S. economic and trade negotiations are baseless rumors without factual evidence.”

Traders chose to ignore the tariff battles, however.

Jobless claims hold steady

A fuel for the rally: Initial jobless claims were slightly higher but still reflected a stable job market, Bloomberg News said. 

In remarks delivered delivered Tuesday, Tom Barkin, president of the Richmond Federal Reserve Bank, said companies aren't doing a lot of firing. 

Instead, he added, "they are defensive, and that includes things like hiring freezes or postponing investments or delaying, deferring.”

Home sales slide

Existing home sales fell 4.9% to a seasonally adjusted rate of 4.08 million units, the National Association of Realtors said. Analysts had expected a sales rate of 4.13 million units. 

The sales rate was down 5.9% from February and 2.14% from March 2024. The sales represent transactions agreed to in January and February. 

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Existing home sales represent roughly 90% of all home sales in the United States. Lawrence Yun, the chief economist for group, blamed higher interest rates, high prices and inventory shortages.

The median price of a home was $403,700, the report said, up 2.7% from a year ago.

Prices were flat to lower at under $500,000. On homes valued at $1 million or more, prices were up 13.8%, the report said.

The rate on a 30-year was at just under 7%, according to a weekly survey from Freddie Mac, the big investor in mortgages.

Stock Market Today

Stocks were looking at a mixed open on Thursday after two huge rallies on Tuesday and Wednesday. 

There was some selling pressure generated by profit-taking, but specific stories were also affecting markets. 

The big rally over Tuesday and Wednesday had been fueled by President Donald Trump's backing off his criticism of the Federal Reserve and softening his tough talk about trade with China.