01:53 PM EST, 03/07/2024 (MT Newswires) -- US equity indexes were led higher by technology and communication services after midday Thursday amid Federal Reserve Chair Jerome Powell's reminder policymaking will be data-dependent meant a cut in interest rates remains on the table for this year.

The S&P 500 climbed 1.1% to 5,161.8, with the Nasdaq Composite up 1.7% to 16,297.9 and the Dow Jones Industrial Average trading 0.5% higher at 38,855.5. All but two sectors -- financials and real estate -- rose intraday.

The Federal Open Market Committee will likely cut rates in 2024 if the economy continues to evolve as expected, Powell said Thursday during a question-and-answer session before the Senate Banking Committee. This statement repeated his views expressed Wednesday before the House Financial Services Committee and reiterated previous comments policy formulation will be data-dependent.

In his two-day semi-annual testimony before lawmakers, Powell said the FOMC would act "carefully" to reduce rates, following comments from other Fed officials in recent weeks that there are risks to moving too soon or too late in removing its restrictive policy.

Risk assets bounced after Chair Powell's remarks stuck to the recent script from the Fed, according to a note from Deutsche Bank. "That was a relief to markets since there had been concern about a more hawkish framing, particularly after the strong January inflation prints and the recent easing in financial conditions."

Meanwhile, in economic news, the US international trade deficit widened to $67.43 billion in January from a $64.17 billion gap in December, versus the $63.5 billion gap expected in a survey compiled by Bloomberg. Imports rose more than exports, widening the trade gap.

New unemployment claims came in unchanged at 217,000 for the week ended March 2, compared with estimates for a drop to 216,000.

In overseas economic news, the European Central Bank held rates steady for the fourth consecutive meeting. The ECB revised its 2024 economic growth forecast to 0.6% from 0.8% and eased inflation expectations to 2.3% from 2.7%, a note from Stifel said.

The US 10-year Treasury yield rose 1.5 basis points to 4.12%, while the two-year dropped four basis points to 4.52%.

Gold for April delivery on the Comex rose 0.4% to $2,166.71 per troy ounce intraday, scaling all-time highs this week. Silver advanced 0.5% to $24.62 per troy ounce.

West Texas Intermediate crude oil declined 0.3% to $78.86 per barrel intraday.

In company news, Kroger ( KR ) gave an upbeat full-year profit outlook on Thursday as inflation-hit consumers sought cheaper meal options, boosting the supermarket chain's fiscal Q4 results. Shares jumped 8.9%, the second-highest intraday return on the S&P 500.

Intel ( INTC ) will probably receive $3.5 billion from the US government to develop advanced semiconductors for military and intelligence programs, Bloomberg reported late Wednesday, citing congressional aides. Shares of the chipmaker advanced 3.8% intraday, the top performer on the Dow.