12:46 PM EST, 03/07/2024 (MT Newswires) -- US equity indexes rose midday Thursday as Federal Reserve Chairman Jerome Powell appeared before lawmakers for the second day of his semi-annual testimony, and the trade deficit unexpectedly widened.

The S&P 500 climbed 1% to 5,153.7, with the Nasdaq Composite up 1.4% to 16,261.2 and the Dow Jones Industrial Average trading 0.4% higher at 38,810.3. All but two sectors -- financials and real estate -- rose intraday. Technology and communication services led gainers.

The Federal Open Market Committee will likely cut interest rates in 2024 if the economy continues to evolve as expected, Chairman Jerome Powell said during a question-and-answer session before the Senate Banking Committee Thursday, repeating comments he made on Wednesday before the House Financial Services Committee.

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.

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.

The US 10-year Treasury yield rose 1.7 basis points to 4.12%, while the two-year slipped 3.1 basis points to 4.53%.

Gold for April delivery on the Comex rose 0.3% to $2,164.31 per troy ounce intraday, scaling all-time highs this week. Silver advanced 0.6% to $24.63 per troy ounce.

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 8.8%, the second-highest intraday return on the S&P 500.

West Texas Intermediate crude oil slipped 0.2% to $79.25 per barrel intraday.