US open: Stocks rise, but cautious mood keeps gains in check

(Sharecast News) - US stock markets edged higher in early trade on Thursday following dovish signals from the Federal Reserve the previous evening, though gains were limited as investors awaited earnings from a host of blue chips, including Micron Technology and Nike and FedEx.

By 1003 in New York, the Dow and S&P 500 were both trading 0.2% higher while the Nasdaq gained 0.3%.

Futures had pointed to a weaker start ahead of the opening bell after a "sudden 'risk off' move mid-morning", which strengthened US bond prices and hit global stock markets.

"The was no obvious trigger for the move. Perhaps it simply indicates skittishness amongst traders," said David Morrison, senior market analyst at Trade Nation. "There's currently a high level of uncertainty prevalent amongst market participants due to all the complex geopolitical factors currently at play, together with the mercurial nature of the Trump administration."

However, benchmarks quickly turned positive, extending gains made the previous day on the back of comments by Fed chair Jerome Powell. While the Fed left interest rates on hold, as expected, Powell said that a predicted increase in inflation - due to an escalating trade war - would likely only be "transitory", with the dot plot still pointing to two interest-rate cuts this year.

The Federal Open Market Committee did, however, lower its growth projections and raise its forecasts for inflation amid increased economic uncertainty.

10-year US Treasury yields continued to decline following the FOMC meeting, trading 3.3 basis points lower at 4.204%.

A series of economic indicators met or beat forecasts on Thursday: jobless claims rose by just 2,000 last week, more or less hitting consensus estimates; the Philly Fed manufacturing index fell to 12.5 from 18.1 but topped the 8.5 forecast; while existing home sales bounced back 4.2% to 4.26m in February after falling 4.7% the previous month, comfortably beating the 3.95m expected.

Market movers

Shares in Accenture slumped 8% early on after the consultancy group said that a crackdown on US federal spending - led by Elon Musk's DOGE initiative - was weighing on revenues.

Tesla was also in the red on the news that the electric vehicle maker is having to recall more than 46,000 Cybertrucks to fix a problem with an exterior trim panel.

Data storage firm Micron Technology, sporting goods giant Nike and logistics group FedEx were all little changed ahead of their earnings reports due out after the close.