Highlights
Stocks extended Wednesday's advance on Thursday amid relief over President Trump's retreat on his various Greenland threats. The Dow Jones industrial average and the S&P 500 both rose 0.6 percent and the Nasdaq gained 0.9 percent. US Treasury yields were flat to higher while oil prices and the dollar declined.
Risk appetite remained buoyant Thursday after Wednesday's rally when Trump said he had enough of a deal with NATO powers on Greenland to withdraw his threatened tariffs. The market also appeared heartened by an expectation that Trump's threat to Federal Reserve independence would fail for now amid apparent skepticism among Supreme Court conservatives over his desire to remove a Fed governor. Economic data came in stronger than expected and investors in their current mood chose to consider that supportive for stocks.
Technology stocks linked to artificial intelligence rallied to help the Nasdaq outperform. Gains were widespread with smaller companies joining the rally to lift the Russell 2000 to a record closing high.
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.