Gold miner stocks are on track for their best week of the year as the record high in gold prices continues to drive gains. The VanEck Gold Miners ETF (GDX) is up about 2.5% in early trading, with a total increase of more than 7% for the week. This marks the best performance for the fund since December 1, when it rose 8.5%.
In other news, the stock market opened higher on Wednesday after two consecutive down days. The Dow was up 0.5%, while the S&P 500 and Nasdaq Composite added 0.7% and 1% respectively.
Federal Reserve Chair Jerome Powell reiterated that the central bank is not yet ready to cut interest rates, stating that any adjustments will be based on incoming data and the evolving economic outlook. Powell also mentioned that rate policy is likely at its peak for this tightening cycle.
Additionally, ADP reported that private payrolls grew less than expected in February, with firms adding 140,000 positions for the month, slightly below economists’ forecasts.
UBS highlighted similarities between today’s stock market rally and the 1990s bull run, noting some parallels but also significant differences. The firm emphasized that the current rally is based on stronger underlying businesses, unlike the dot-com bubble of the late 90s.
Palantir Technologies saw a jump in premarket trading after winning a $178.4 million contract from the U.S. Army to develop artificial intelligence-powered ground stations. The company’s stock has rallied more than 38% since the beginning of the year.
Foot Locker, on the other hand, retreated before the bell after offering weak guidance for full-year earnings. The shoe retailer’s soft outlook overshadowed a better-than-expected fourth quarter performance.
In international news, eight Australian firms have committed to investing over $3 billion in Malaysia, focusing on the digital and green economy sectors. This comes after Australian companies expressed interest in investing billions in the country during an official visit by the Malaysian prime minister.
Overall, the stock market continues to show resilience and volatility as investors navigate economic data, corporate earnings, and global developments.
