With the tech sector driving the S&P 500 to a record high on Thursday, Federal Reserve Chair Jerome Powell confirmed that rate cuts are still possible this year, boosting market confidence that monetary policy tightening by global central banks is anticipated to start in June.

The S&P 500 increased 1% by 16:00 E.T. (21:00 GMT) to close at a record high of 5,156. The NASDAQ Composite increased 1.5%, while the Dow Jones Industrial Average gained 130 points, or 0.4%, to 84.

Nvidia showcases tech

Amid hopes that the A.I. revolution will increase chip demand, NVIDIA Corporation (NASDAQ: NVDA) surged more than 4% to close at a new record high, pushing up the whole tech sector.

Nvidia was not the only company in a rally; Micron Technology Inc. (NASDAQ: M.U.) also saw a surge, climbing more than 3% following Stifel’s upgrading of the memory chipmaker to buy on anticipation of an increase in memory demand.

Powell restates future rate reduction, and the ECB plans to do so.

Fed Chair Jerome Powell reiterated his views from the previous day during his second testimony before Congress, saying that the Fed is “not far” from gaining the trust required to lower interest rates this year.

The European Central Bank held rates unchanged but lowered its inflation prediction, indicating a faster pace of improvement than previously, which has led to optimism that major central banks will cut rates as soon as June.

In response to the news, European sovereign bonds—which move in the opposite direction of yields—jumped, pushing up short-term U.S. Treasury yields. The yield on the 2-year Treasury dropped four basis points to 4.52% today.

Victoria’s Secret struggles with poor guidance, while Kroger soars on positive guidance.

The food retailer Kroger (NYSE: K.R.) predicted yearly sales and profit well above Wall Street projections, citing greater demand for goods at its shops as more Americans prepare meals at home amid ongoing inflation. This caused the stock to rise by almost 10%.

Victoria’s Secret (NYSE: VSCO) saw a 30% decline after predicting lower yearly sales after a slow start to the year. Consumers in its main North American market shifted to less expensive options.

While American Eagle Outfitters (NYSE: AEO) fell almost 2% on Thursday after the apparel retailer topped Wall Street expectations for the fourth quarter as customers snapped up full-price items during the crucial holiday shopping season in the United States, cybersecurity firm OneSpan (NASDAQ: OSPN) surged 23% on consensus-beating quarterly earnings.

The recovery of New York Community Bancorp keeps going.

Following its 5% increase the day before, credit rating company Fitch Ratings affirmed New York Community Bancorp (NYSE: NYCB) as a BB+ real estate lender, citing its recent $1 billion cash infusion.

On Wednesday, New York Community Bancorp revealed that it had raised more than $1 billion by offering $2 shares of stock and warrants to a group of investors. Although the sale is “tremendously dilutive to common shareholders,” Wedbush noted in a report that the purchase offers a much-needed cash infusion amid concerns about the bank’s exposure to defective real estate loans.

Concentrate on the monthly jobs report

Just one day before the crucial nonfarm payrolls data, the number of Americans submitting new claims for unemployment benefits remained constant last week at 217,000, indicating more signs of a slowdown in the labor market.

Job opportunities in the United States decreased by 26,000 in January as hiring decreased along with the steady labor market improvement.

This is in front of Friday’s highly anticipated announcement of nonfarm payrolls, which will provide additional hints about the health of the U.S. economy.