- The Dow Jones Industrial Average rallied 1.08% on Thursday, extending a recent winning streak as upbeat economic data and easing inflation concerns buoyed investor sentiment.
- The S&P 500 and Nasdaq Composite also advanced, with technology and financial sectors leading the charge.
- Market participants are now eyeing the upcoming Federal Reserve meeting for clues on the pace of rate cuts.
Wall Street continued its upward march, with the Dow Jones Industrial Average climbing 1.08% to close at a fresh high. The broader S&P 500 rose 0.9%, while the Nasdaq Composite added 0.7%, driven by gains in megacap tech stocks and financials.
The rally came after a string of economic data pointed to a resilient U.S. economy. Weekly jobless claims fell more than expected, and a key manufacturing index beat forecasts, signaling that the downturn may be bottoming out. “The data is reinforcing the soft landing narrative,” said a portfolio manager at a New York-based asset manager. “Investors are gaining confidence that the Fed can ease policy without triggering a recession.”
Treasury yields edged lower, with the 10-year note dipping to 4.12%, as traders priced in a higher probability of a rate cut at the Fed’s September meeting. According to CME Group’s FedWatch tool, futures now imply a 75% chance of a quarter-point reduction. “The market is laser-focused on the Fed’s next move,” said a fixed-income strategist. “If we get a dovish signal next week, this rally has legs.”
In corporate news, bank stocks surged after JPMorgan Chase reported better-than-expected profit margins, while tech giants like Apple and Microsoft also notched gains. However, some analysts cautioned that valuations remain stretched. “We’re in a momentum-driven market right now,” noted a chief investment officer. “But without a catalyst, the upside could be limited from here.”
This article was updated at 4:30 PM ET to reflect market close data.