Investors were still digesting the Fed's policy decision on Wednesday and comments from Powell, who acknowledged progress in the fight against inflation and appeared reluctant to push back against the rally in stocks and bonds. “I think the reaction to yesterday’s Fed comments really encouraged investors to go risk on,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. Data showed jobless claims fell last week to a nine-month low, highlighting the labor market's resilience, ahead of monthly U.S. employment numbers on Friday.