Highlights
Stocks advanced Thursday with gains nearly across the board as interest rates fell amid hopes for rate cuts after more weak jobs data. The Dow Jones industrial average advanced 1.4 percent to set a new record closing high, the S&P 500 gained 0.9 percent, and the Nasdaq was up 0.7 percent. US Treasury yields, oil prices, and the dollar all declined.
News of an unexpected weekly surge in jobless claims added to expectations of Federal Reserve rate cuts while consumer price figures were generally in line with expectations. That leaves the Fed on track to cut rates multiple times starting next week, investors believe.
Technology shares were mixed but mostly better with rallies in Micron and Tesla leading the way. Other winners included homebuilders, cruiselines, banks, and materials. Lagging were chain stores, casinos, entertainment, energy, software, and auto suppliers.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.