Nasdaq and Dow Jones DJIA Extend Records Despite Hot CPI As High Claims Hike Rate-Cut Bets
The Dow Jones Industrial Average surged 1.36% on Thursday, driving major U.S. markets to record highs. Despite conflicting economic data...
Quick overview
- Major U.S. indexes reached record highs, with the Dow Jones Industrial Average leading the way with a 1.36% increase.
- The latest CPI report indicated higher inflation, but a rise in jobless claims shifted investor sentiment towards potential Federal Reserve rate cuts.
- Cyclical sectors showed strong momentum, contributing to a broad-based rally across the market despite mixed economic signals.
- Notable stock movers included Paramount Skydance and Synopsys, reflecting positive sentiment in the tech and entertainment sectors.
The Dow Jones Industrial Average surged 1.36% on Thursday, driving major U.S. markets to record highs. Despite conflicting economic data, the S&P 500 gained 0.5% and the Nasdaq Composite increased 0.72%, highlighting the strength of the overall market.
Inflation and Jobless Claims in Focus
The key driver of today’s session was the release of the latest CPI report, which came in hotter than some had expected. Normally, such data would weigh on equities, but the reaction was muted as markets focused instead on signs of a cooling labor market.
Initial jobless claims jumped to their highest level since 2021, with Texas showing an especially sharp rise. The increase shifted investor sentiment toward the Federal Reserve potentially adopting a more dovish stance.
DJIA Chart Daily – MAs Acting As Support
Fed Cuts Now Fully in Play
Markets are now pricing in nearly three quarter-point rate cuts this year, a dramatic shift that sent the U.S. dollar tumbling and fueled appetite for risk assets. The dovish expectations outweighed concerns about sticky inflation, sparking a powerful equity rally across most sectors.
Closing Levels for Major US Indices
Dow Jones Industrial Average (DJIA): Closed at 46,108.00, up +617.08 points (+1.36%).
- The DOW led the rally, driven by strength in materials and healthcare stocks.
- Cyclical sectors showed strong momentum, hinting at renewed optimism for economic resilience.
S&P 500: Finished at 6,587.47, higher by +55.43 points (+0.85%).
- Broad-based participation across sectors helped the S&P advance, with 10 of 11 sectors in positive territory.
- Materials, healthcare, and consumer discretionary were the strongest contributors.
Nasdaq Composite: Ended at 22,043.07, up +157.01 points (+0.72%)
- Tech names lagged relative to other indices, though chipmakers and select mega-caps provided support.
- Momentum was softer in high-growth tech compared to cyclical and defensive plays.
Sector Performance – S&P 500 Breakdown
- Materials: +2.14% (sector leader, driven by metals and chemicals).
- Health Care: +1.73% (support from biotech and big pharma).
- Consumer Discretionary: +1.70% (boosted by retail and auto strength).
- Real Estate: +1.68%
- Financials: +1.67%
- Industrials: +0.96%
- Consumer Staples: +0.94%
- Utilities: +0.49%
- Information Technology: +0.18%
- Communication Services: +0.18%
- Energy: −0.04% (only sector in red, pressured by softer crude oil prices).
Notable Stock Movers
- Paramount Skydance (PSKY): Shares jumped on reports of a majority-cash bid to acquire Warner Bros Discovery.
- Synopsys (SNPS): Advanced after upbeat outlook tied to semiconductor demand.
- Stellantis (STLA): Gained on signs of stabilizing EV demand and easing supply chain pressures.
- Alibaba (BABA): Rose on positive sentiment around China’s reopening and regulatory tailwinds.
- Lam Research (LRCX): Climbed on expectations of strong DRAM and logic chip demand.
- Micron (MU): Extended gains as chip-sector strength continued, supported by AI demand.
- Tesla (TSLA): Moved higher on speculation over product announcements and stronger pricing power.
Market Leadership and Sentiment
The rally was led by cyclical and defensive sectors, while the energy sector was the only one to close in the red. The Nasdaq lagged slightly but stayed positive thanks to semiconductor strength and gains among large-cap tech stocks. Overall sentiment was decisively bullish, with traders positioning for economic resilience and expanding demand across multiple industries.
Dow Jones Live Chart
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