US stocks jumped on Thursday as investors reacted to new inflation and labor data. This optimism comes as expectations grow for a quarter-point interest rate cut next week.
The S&P 500 rose 0.7%, marking its fourth consecutive winning session. Similarly, the Nasdaq Composite jumped about 1%, also achieving a fourth straight day of gains, largely driven by technology stocks. The Dow Jones Industrial Average edged up nearly 0.6%.
Tech Sector Revival
The trading session began with little change, but stocks quickly moved into positive territory. Enthusiasm for tech companies fueled this shift. Recent data reinforced the belief that the Federal Reserve will implement a smaller, 25-point rate reduction instead of a larger, 0.5% cut.
US stocks jumped on Thursday as investors reacted to Data – Inflation Data
On Thursday, the August Producer Price Index (PPI) indicated that inflation pressures are easing. Wholesale prices rose by 0.2% month-over-month, slightly above economists’ expectations.
On an annual basis, the PPI increased by 1.7%, consistent with forecasts, while July’s figure was revised downwards. This follows August’s consumer price report, which also showed gradual cooling.
Labor Market Insights
On the labor front, initial jobless claims rose more than anticipated, reaching 230,000 last week. This marks an increase of 2,000 from the previous week. Following these reports, traders increased their odds of a 25 basis point cut to 87%, up from 50% just days ago.
US stocks jumped on Thursday as investors reacted to Data – Corporate News
In corporate news, shares of Moderna (MRNA) dropped 12% after the vaccine manufacturer lowered its annual revenue outlook for 2025. The company also announced plans to cut its annual research and development budget.
Overall, the market’s positive trend reflects optimism amid changing economic indicators. Investors will continue to monitor upcoming data and corporate developments in the days ahead.
