CashNews.co
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.