The S&P 500 soared to a new all-time high on Thursday as investors reacted to Federal Reserve Chair Jerome Powell's comments during his second day of congressional testimony. Powell reiterated his stance on interest-rate cuts, stating that they are likely to commence in 2024. The benchmark index hit an intraday peak of 5,155.37, driven by Powell's reaffirmation of the Fed's intention to lower interest rates.

During his testimony, Powell acknowledged the significant declines in core inflation and expressed the Fed's desire to observe further progress in this area. He also commented on the surprising strength of the economy amidst tighter financial conditions, noting the lack of a spike in unemployment despite the decrease in inflation.

While Powell had previously stated that rate cuts were not imminent, he assured Congress on Thursday that the Federal Reserve "can and will" begin the easing cycle this year. This shift in tone toward a potential mid-year rate cut has led analysts to revise their predictions, with many now expecting a rate cut in June rather than May.

In addition to Powell's testimony, jobless claims for the week ending March 2 were released, aligning with expectations. The Labor Department reported 217,000 new claims, while continuing claims rose slightly to just above 1.9 million. These figures will provide the Federal Reserve with valuable insight as they assess the economy's readiness for interest rate adjustments.

On the global front, the European Central Bank opted to maintain its benchmark rates unchanged and revised its economic growth forecast downwards. These developments highlight the divergence in monetary policy approaches between different central banks.

Turning to the market, the Dow Jones Industrial Average saw a modest increase of 0.32%, gaining 125.37 points, while the Nasdaq composite surged by 1.13%. Palantir, an artificial-intelligence firm, experienced a stock spike after securing a contract with the US Army. Citibank noted that bullish tech bets are currently at their highest level in three years.

In commodities trading, oil prices dipped as West Texas Intermediate declined by 0.85% to $78.46 per barrel, and Brent crude, the international benchmark, fell by 0.47% to $82.57 per barrel. On the other hand, gold prices edged higher, rising by 0.3% to reach $2,158.90 per ounce. The 10-year Treasury yield experienced a small rise, with an increase of approximately 1 basis point, hovering at 4.116%. Finally, Bitcoin recorded a minor increase of 0.04%, reaching $67,222.

The next significant data point for the Federal Reserve will be the release of nonfarm payrolls on Friday. Analysts anticipate that employers added 198,000 jobs in February, a decrease compared to the impressive 353,000 job additions reported in January.

Overall, the market responded positively to Chairman Powell's comments, pushing the S&P 500 to a historic high. As investors await further economic indicators and potential rate cuts, the ongoing global economic landscape remains uncertain.