US equities rallied on Thursday, fueled by encouraging inflation data that tempered expectations of aggressive Federal Reserve policy. The Dow Jones Industrial Average closed at 47,952 points, a 0.1% increase from the previous day’s close. The broader S&P 500 reached approximately 6,775 points, posting a 0.8% gain, while the Nasdaq 100 surged to around 25,019 points, reflecting a robust 1.5% increase.
The positive market reaction stems from US inflation figures suggesting a discernible cooling of price pressures. However, analysts are urging caution, emphasizing that the ongoing government shutdown introduces significant complications to data collection. Notably, the calculation of housing costs, a crucial component in inflation metrics, was reportedly adjusted to assume no price changes, potentially skewing the results and necessitating critical re-evaluation when more comprehensive data becomes available. The integrity of the figures has become a new point of political contention, with opposition figures questioning the administration’s transparency regarding economic indicators.
Buoying investor sentiment further, prospects for continued growth within the artificial intelligence sector have received a significant boost. Micron Technology, a leading semiconductor manufacturer, exceeded earnings expectations and revised its forward-looking guidance upwards. This performance underscores the persistent demand for advanced chips essential to AI infrastructure, though concerns remain regarding potential overvaluation within the AI-driven technology landscape.
The Euro weakened slightly against the US dollar, trading at $1.1725, reflecting a dollar value of €0.8529. This currency movement adds another layer of complexity to the ongoing debate surrounding transatlantic trade dynamics and potential shifts in global economic power.
Gold prices experienced a marginal decline, settling at $4,332 per fine ounce (-0.2%) or €118.80 per gram. This pullback suggests a cautious stance among investors, perhaps anticipating further economic headwinds or a recalibration of safe-haven asset strategies.
Crude oil prices edged slightly higher, with a barrel of Brent North Sea crude fetching $59.69, a one-cent increase from the previous day’s closing price. The modest rise may be tied to broader geopolitical uncertainty and fluctuations in global energy demand, highlighting the persistent volatility within the commodities market.
