Stocks have moved mostly higher during trading on Thursday, extending the substantial rally seen over the two previous sessions. The major averages have all reached new record intraday highs, with the tech-heavy Nasdaq leading the charge.
Currently, the Nasdaq and the S&P 500 are just off their highs of the session. The Nasdaq is up 223.40 points or 1.2 percent at 19,206.86 and the S&P 500 is up 32.23 points or 0.5 percent at 5,961.27.
The narrower Dow, on the other hand, has fluctuated after reaching a record high in early trading and is currently down 20.43 points or 0.1 percent at 43,709.50.
The continued strength on Wall Street partly reflects ongoing optimism about the impact of former President Donald Trump’s return to the White House.
Trump’s policies are expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation.
Stocks have also benefited from Trump’s victory over Vice President Kamala Harris being decisive, avoiding the uncertainty that would be created by a prolonged vote counting process and potential legal challenges.
Meanwhile, traders are also looking ahead to the Federal Reserve’s monetary policy announcement this afternoon.
With the Fed widely expected to lower rates by 25 basis points, traders are likely to pay close attention to the accompanying statement for clues about the outlook for future rate cuts.
Ahead of the announcement, CME Group’s FedWatch Tool is indicating a 66.4 percent chance the Fed will cut rates by another 25 basis points in December but a 31.8 percent chance rates will be left unchanged.
On the U.S. economic front, a report released by the Labor Department showed a modest rebound by first-time claims for U.S. unemployment benefits in the week ended November 2nd.
The Labor Department said initial jobless claims crept up to 221,000, an increase of 3,000 from the previous week’s revised level of 218,000.
The uptick came a week after jobless claims dropped to their lowest level since hitting 216,000 in the week ended May 18th.
The Labor Department also released a separate report showing labor productivity surged by slightly less than expected in the third quarter, while unit labor costs jumped by much more than expected.
Sector News
Semiconductor stocks are extending the surge seen over the two previous sessions, driving the Philadelphia Semiconductor Index up by 1.8 percent.
Significant strength is also visible among retail stocks, as reflected by the 1.6 percent gain being posted by the Dow Jones U.S. Retail Index. The advance has lifted the index to a record intraday high.
Software and computer hardware stocks are also seeing considerable strength, contributing to the surge by the tech-heavy Nasdaq.
On the other hand, oil service stocks have pulled back sharply after soaring in the previous session, dragging the Philadelphia Oil Service Index down by 2.3 percent.
Banking stocks are also giving back ground following yesterday’s rally, with the KBW Bank Index slumping by 2.0 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Thursday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong Kong’s Hang Seng Index shot up by 2.0 percent and China’s Shanghai Composite Index spiked by 2.6 percent.
Meanwhile, European stocks have moved mostly higher on the day. While the German DAX Index has surged by 2.0 percent, the French CAC 40 Index is up by 1.0 percent and the U.K.’s FTSE 100 Index is just above the unchanged line.
In the bond market, treasuries are rebounding following the sell-off seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.9 basis points at 4.347 percent.
Business News
U.S. Stocks See Further Upside, Reaching New Record Highs
2024-11-07 16:14:31
