5 things to know before the stock market opens Thursday

Here are the most important news items that investors need to start their trading day:

The major averages posted their first winning session in three on Wednesday. The S&P 500 gained 0.51%, the Nasdaq Composite rose about 0.6%, and the Dow Jones Industrial Average advanced about 0.2%. Futures tied to all three averages ticked higher in premarket trading, too. Though all three indexes are still in the red for the week. The S&P has about 0.6% to claw back by the end of the week to end in positive territory, the Nasdaq is 1.5% off on the week, and the Dow has about 1% to make up. Follow live market updates.

In prepared remarks for Capitol Hill Wednesday, Fed Chair Jerome Powell reiterated that the central bank does not plan on cutting interest rates any time soon. Powell said he expects rates to start coming down at some point this year, but that he can’t give a more precise timeline as the bank waits to see more data before taking any action. “We think because of the strength in the economy and the strength in the labor market and the progress we’ve made, we can approach that step carefully and thoughtfully and with greater confidence,” Powell said. He’s due to appear before the Senate Banking Committee Thursday.

Shares of struggling regional lender New York Community Bancorp sold off and recovered Wednesday on trickle-out news of a capital infusion. The bank announced a $1 billion raise from several investment firms, including former Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital. As part of the deal, Mnuchin will join the bank’s board of directors, as will Joseph Otting, former comptroller of the currency, who is also taking over as CEO. The investment is the latest in a series of volatile events for the troubled lender, which has been plagued by credit downgrades, executive turnover and operational issues.

President Joe Biden wants to boost the number of drugs that are subject to Medicare price negotiations. He’s proposing that 50 drugs annually be put through the price talks, up from a current target of 20 medications, according to a fact sheet released Wednesday by the White House. It’s one of multiple healthcare policy proposals Biden is expected to outline during his Thursday night State of the Union address. The Medicare price negotiations, introduced as part of the Inflation Reduction Act, have already invited lawsuits from the pharmaceutical industry, which stands to lose some profits as a result of lower prices.

An artificial intelligence engineer at Microsoft is issuing a stark warning about the company’s AI image creator, Copilot Design. The software, he says, frequently produces content that is sexual or violent in nature or that could infringe on copyright law. CNBC’s Hayden Field was able to reproduce the disturbing AI-generated images with only minimal keyword inputs. “This is really not a safe model,” said Shane Jones, the engineer, who says he escalated concerns at Microsoft but to little effect. Jones detailed his discoveries in letters to Federal Trade Commission Chair Lina Khan and to Microsoft’s board of directors Wednesday.

– CNBC’s Samantha Subin, Jeff Cox, Jesse Pound, Annika Kim Constantino and Hayden Field contributed to this report.

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