US stock markets ended higher, with technology stocks leading the rally.
The S&P 500 gained 0.75% on Thursday, marking its fourth consecutive winning session, closing at 5,595.76. The Dow Jones Industrial Average climbed by 235.06 points, or 0.58%, to 41,096.77, while the Nasdaq Composite rose 1% to 17,569.68.
Investors showed renewed optimism as they bought into tech stocks ahead of an anticipated interest rate cut by the Federal Reserve next week. Major tech companies, including Nvidia, Alphabet, and Meta Platforms, saw significant gains, with Nvidia up 1.9% and both Alphabet and Meta climbing more than 2%.
Economic data released this week further supported expectations of a quarter-percentage-point rate reduction. The Producer Price Index (PPI), which measures wholesale price changes, rose 0.2% in August, consistent with market expectations. Additionally, the number of weekly jobless claims rose slightly to 230,000, aligning with predictions.
These reports have boosted market confidence that the Federal Reserve will implement a modest rate cut, with the odds of a 25-basis-point cut increasing to 87%. Edward Jones senior investment strategist Mona Mahajan noted that the market is in “wait-and-see mode” ahead of the Fed’s meeting, expecting gradual economic cooling rather than a sharp downturn.
While Thursday’s inflation and labor data calmed fears of a more significant rate cut, investors remain focused on how the Federal Reserve will manage inflation and economic growth moving forward.
The rally in tech stocks, especially in artificial intelligence and semiconductors, helped propel the market higher, with Nvidia’s gains pushing its weekly rise to nearly 16%. However, not all sectors saw gains, as Moderna’s stock dropped 12.4% after the company lowered its revenue outlook for 2025 and reduced its research and development budget.
With input from CNBC, Yahoo Finance, Reuters, the Associated Press.
