U.S. stocks soared Thursday as investors weighed the latest inflation and labor data against high expectations for next week’s quarter-point rate cut.
The S&P 500 (^GSPC) rose 0.7%, ending its fourth consecutive winning session. The Nasdaq Composite Index (^IXIC) also extended its gains this week, supported by tech, rising about 1%, also the fourth consecutive day of positive gains. The Dow Jones Industrial Average (^DJI) rose nearly 0.6%.
Stocks opened little changed, but enthusiasm for tech stocks revived and moved firmly into green territory. The last major data released this week confirmed expectations for a smaller 25-point rate cut by the Federal Reserve next week, rather than a larger 0.5% cut.
Early Thursday, the August producer price index showed new signs that inflationary pressures are easing. Wholesale prices rose 0.2% from the previous month, slightly higher than economists expected. On an annualized basis, PPI increased by 1.7%, in line with expectations, although the July reading was revised downward. Following this, consumer prices also showed a gradual cooling in August.
Read more: Fed’s 2024 predictions: What experts say about possible rate cuts
Meanwhile, data from the Labor Front showed that the number of new unemployment insurance claims exceeded expectations last week at 230,000, an increase of 2,000 from the previous week. Traders’ odds of a 25 basis point (bp) rate cut rose to 87% after the report, up from 50% a few days ago.
On the corporate front, shares of vaccine maker Moderna (MRNA) plunged 12% after the company lowered its 2025 annual earnings outlook. The company also announced that it will reduce its annual research and development budget.
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Thursday, September 12, 2024 1:02 PM MST
Tech leads the market, Nasdaq and S&P 500 rise for fourth day in a row
Tech stocks led the S&P 500 (^GSPC) and Nasdaq (^IXIC) to a fourth straight day of wins on Thursday.
Some large-cap stocks rose, with Nvidia (NVDA) and Meta (META) each up about 2%.
The S&P 500 Index (^GSPC) rose 0.7% and the Nasdaq Composite Index (^IXIC) rose about 1%. Over the past four sessions, the market-wide index and tech stock average have risen more than 3% and 5%, respectively.
The Dow Jones Industrial Average (^DJI) rose nearly 0.6% on Thursday.
Early Thursday, the August producer price index showed new signs that inflationary pressures are easing.
Based on the latest data, investors are betting that the Federal Reserve is more likely to cut interest rates by 25 points next Wednesday, rather than by a deep 0.5%.
Thursday, September 12, 2024 12:31 PM MST
Nvidia rises more than 2% and remains above its 50-day moving average
With about 30 minutes left in Thursday afternoon trading, Nvidia (NVDA) led the Nasdaq 100’s rise.
The leading AI chip company added to its gains on Wednesday, surpassing its 50-day moving average.
The stock was trading near $120 per share. Year-to-date, the stock is up more than 145%.
Thursday, September 12, 2024 11:40am MST
Nasdaq rises 1% as tech leads market
The Nasdaq Composite Index (^IXIC) rose more than 1% on Thursday, led by technology and consumer discretionary stocks. The S&P 500 (^GSPC) also rose 0.8%.
Nvidia (NVDA) rose nearly 3% to $120 per share. Alphabet (GOOGL, GOOG) and Meta (META) also rose.
Nasdaq rose Thursday as tech stocks led market gains
Thursday, September 12, 2024 11:15am MST
Crude oil rises more than 2% as production disrupted by Storm Francine
Crude oil prices rose for the second consecutive session on Thursday due to oil disruptions in the Gulf of Mexico caused by Hurricane Francine.
West Texas Intermediate (CL=F) rose nearly 3% to $69 a barrel, while Brent (BZ=F) rose to around $72.
Francine was downgraded from a hurricane to a severe storm several hours after making landfall. This shuts down about 670,000 barrels of oil per day in the Gulf of Mexico, according to the U.S. Safety and Environmental Enforcement Administration.
Thursday, September 12, 2024 10:30am MST
Gold hits record high as investors wait for Fed rate cut
Gold hit an all-time high on Thursday as investors await next Wednesday’s Fed rate cut. Year-to-date, precious metals are up more than 24%, far outpacing the broader market.
Gold futures (GC=F) rose more than 1% to $2,576 an ounce. Silver futures (SI=F) also rose 3%, trading above $30 an ounce.
Thursday, September 12, 2024 9:45am MST
GM and Hyundai to consider jointly developing vehicles to “expand scale”
Yahoo Finance’s Pras Subramanian reports:
General Motors (GM) and Hyundai (HYMTF) signed an agreement Thursday morning to explore joint development of vehicles, powertrains and various technologies, showing how far the South Korean automaker has come over the past 30 years.
Under the non-binding memorandum signed by Hyundai Motor Group Executive Chairman Yuisung Chung and GM CEO Mary Barra, the two companies will develop passenger car and commercial vehicle production, as well as powertrain technologies such as gas motors. The two companies will cooperate and jointly develop projects including: Clean energy options include electricity and hydrogen options.
The two major automakers said they would explore opportunities to combine sourcing of battery raw materials, steel and other products.
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Thursday, September 12, 2024 9:00 AM MST
Mortgage payments are now cheaper than a year ago thanks to lower interest rates: Redfin
Buying a home is now more affordable than it was a year ago, according to new data from Redfin.
Redfin found that the median monthly mortgage payment reached $2,558 in the past four weeks ending in September. This was a 1.3% decrease compared to last year.
Lower mortgage rates were a big help. The average interest rate on a 30-year fixed-rate mortgage fell to 6.2% this week, according to Freddie Mac data. Mortgage rates have fallen by more than half a percentage point in the past six weeks as investors expect the Federal Reserve to cut interest rates. This is the lowest level since February 2023.
Still, housing prices have not fallen from their highs. The median sales price was $388,085, up 3.7% from a year ago, according to Redfin data. Housing prices remain high due to a lack of supply. This, along with buyers’ expectations that interest rates will fall after the Fed’s monetary easing, continues to keep the housing market stagnant.
Thursday, September 12, 2024 8:25am MST
Apple receives FDA approval for AirPod hearing aid software
Apple (AAPL) has received approval from the U.S. Food and Drug Administration for hearing aid software for use with AirPods.
The feature was first announced at the tech giant’s annual product launch in California earlier this week.
Once installed and customized, commercially available hearing aid software is “intended to amplify sound for persons 18 years of age or older who have recognized mild to moderate hearing loss,” according to a statement from the FDA.
Thursday, September 12, 2024 7:35am MST
“No big surprises”: Why Apple stock doesn’t move much on iPhone 16 news
Yahoo Finance’s Madison Mills reports:
Apple Intelligence, Apple’s artificial intelligence product, took center stage at the annual iPhone event on Monday.
But for investors, Apple Intelligence’s slow rollout could be a problem. Apple’s iPhone 16 will be in stores on September 20th, but the software update required for Apple Intelligence won’t be available to US English users until October.
The disconnect between hardware and software may be one reason why Apple stock didn’t move much on the news. Shares of the iPhone maker fell about 0.9% during the company’s “Grow Time” presentation in Cupertino, California, but rose less than 1% in the three days following the event.
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Thursday, September 12, 2024 7:08am MST
Delta Air Lines issues strong outlook despite summer technical glitches
Delta Air Lines (DAL) stock soared before falling into negative territory on Thursday after the airline announced that its full-year profit would be in the middle of previously expected ranges, despite a computer glitch earlier this summer. .
The company expects full-year adjusted earnings of more than $6.50 per share, excluding the impact of July’s global technology failure, compared with previous expectations of $6 to $7.
Delta shares fell nearly 2% in early trading.
Thursday, September 12, 2024 6:32 AM MST
Stocks hold steady as inflation data cools further and jobless claims rise above expectations
Stocks rose Thursday as investors digested a new set of data that could help determine how big the Federal Reserve will cut interest rates at this month’s policy meeting. changed little.
The S&P 500 (^GSPC) and the Nasdaq Composite Index (^IXIC) ended the day flat, with big gains driven by gains in tech stocks. The Dow Jones Industrial Average (^DJI) was also little changed.
In terms of inflation statistics, the producer price index in August rose 0.2% month-on-month, slightly higher than economists expected. Meanwhile, PPI readings for July have been revised downward. Compared to the same period last year, wholesale prices rose by 1.7%, in line with expectations.
The number of new jobless claims for the week rose by 2,000 to 230,000, exceeding economists’ expectations.
Investors are paying close attention to these data points as the Federal Reserve prepares for next week’s meeting. Expectations for interest rate cuts are widespread in the market. What is unclear is how much the reduction will be.
