Wall Street traders are treading cautiously as they await Federal Reserve Chairman Jerome Powell’s upcoming testimony and the critical jobs data due later this week. Amidst this anticipation, the euro experienced a dip following the European Central Bank’s (ECB) decision to maintain interest rates and lower its inflation outlook. This move has heightened expectations for a potential rate cut in June, as stated by ECB President Christine Lagarde, who highlighted the current economic frailty and the persistently downside risks to growth.

Stock markets observed modest gains, while bond yields saw a slight decline, following the jobless claims report which remained at a historically low level of 217,000. This report sets the stage for the forthcoming payrolls data, which is pivotal ahead of the Fed’s policy decision. With Powell’s recent remarks indicating no immediate shift towards policy easing, traders are keenly awaiting further guidance.

In the corporate sphere, several noteworthy developments have captured investors’ attention:

General Electric Co. announced plans for its aerospace division to enhance shareholder returns, including the reinstatement of a significant dividend, as it seeks to bolster earnings as an autonomous entity.

Nvidia Corp. saw two of its directors sell approximately $180 million worth of shares, capitalizing on the stock’s continued ascent to new heights.

Micron Technology Inc. received an upgrade to ‘buy’ from ‘hold’ by Stifel, with the brokerage firm asserting that the consensus analyst estimates for 2025 significantly underestimate the chipmaker’s potential.

Victoria’s Secret & Co. disclosed its full-year sales guidance, which did not meet analyst expectations, raising concerns over its future revenue trajectory.

Cigna Group entered into agreements with Eli Lilly & Co. and Novo Nordisk A/S to expand obesity drug coverage, aiming to alleviate the financial burden on employer-sponsored health plans.

Novo Nordisk A/S shared promising data on its innovative obesity treatments, including a daily pill, propelling its shares to an all-time high.

As the trading community gears up for these significant economic updates, the focus remains on deciphering the Fed’s future policy direction amidst evolving market dynamics. These developments, alongside critical corporate news, are likely to influence trading strategies and market sentiment in the days ahead.

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