US stocks jumped on Thursday as investors weighed fresh inflation and labor data against high-running expectations for a quarter-point interest-rate cut next week.
The S&P 500 (^GSPC) rose 0.7% to close out its fourth consecutive winning session. The Nasdaq Composite (^IXIC) jumped around 1%, also in its fourth straight positive day, as it added to gains this week fueled by tech. The Dow Jones Industrial Average (^DJI) edged up almost 0.6%.
Stocks started out the session with little change but firmly moved into green territory with revived enthusiasm for techs. The last major pieces of data this week reinforced bets on a smaller, 25 point rate reduction from the Federal Reserve next week instead of a larger, 0.5% cut.
Early Thursday, the August Producer Price Index provided another indication that inflation pressures are cooling. Wholesale prices rose at a rate of 0.2% month over month, slightly above what economists anticipated. On an annualized basis, PPI increased 1.7%, in line with expectations, while July’s reading was revised lower. That followed August’s consumer price reading that showed gradual cooling, as well.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
Meanwhile, data on the labor front showed initial jobless claims climbed more than expected to 230,000 last week, an increase of 2,000 from the prior weekly period. Traders’ odds of a 25 basis point cut edged up to 87% after the reports, compared with 50% just days ago.
On the corporate front, Moderna (MRNA) shares cratered 12% after the vaccine maker lowered its annual revenue outlook for 2025. The company also said it will slash its annual R&D budget.
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Thu, September 12, 2024 at 3:02 PM CDT
Tech leads markets higher, Nasdaq and S&P 500 gain for 4th straight session
Tech stocks led the S&P 500 (^GSPC) and Nasdaq (^IXIC) to their fourth consecutive daily win on Thursday.
Some of the big cap names rose with Nvidia (NVDA) and Meta (META) each gaining roughly 2%.
The S&P 500 (^GSPC) rose 0.7% while the Nasdaq Composite (^IXIC) jumped about 1%. Over the…
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