U.S. stocks rose on Thursday as investors digested the latest inflation and labor data, testing lofty hopes for a quarter-point interest rate cut next week.
The S&P 500 (^GSPC) rose 0.1%, while the Nasdaq Composite Index (^IXIC) added 0.3% after a sharp closing gain led by tech stocks. The Dow Jones Industrial Average (^DJI) was little changed.
Enthusiasm for tech stocks has been revived, lifting markets back on track after a period of ups and downs on Wednesday that saw stocks bounce back from losses after the latest Consumer Price Index figures dashed hopes of a 0.5% interest rate cut by the Federal Reserve.
Read more: Fed forecast for 2024: Experts discuss chances of rate cut
The August producer price index, released before the close, suggested inflation pressures may have subsided enough for the Federal Reserve to start easing interest rates.
Wholesale prices rose 0.2% from the previous month, slightly more than economists had expected. On an annualized basis, the producer price index rose 1.7%, as expected, although the July figure was revised down.
Meanwhile, the data showed that initial jobless claims rose to a better-than-expected 230,000 last week, up 2,000 from the previous week. Traders’ chances of a 25 basis point rate cut rose to 87% following the report, from 50% just days ago.
On the corporate side, shares of vaccine maker Moderna (MRNA) fell as much as 17% after the company lowered its annual revenue guidance for 2025. The company also announced it would cut its annual research and development budget.
Live6 Updates