US stock markets experienced a significant rally on Thursday, closing with substantial gains. The Dow Jones Industrial Average concluded trading in New York at 46,108 points, marking a 1.4% increase from the previous day’s close.
Shortly before the close, the broader S&P 500 reached approximately 6,588 points, up 0.9%, while the Nasdaq 100 was recorded at around 23,992 points, representing a 0.6% gain.
Recent downward revisions to labor market data and a rise in initial unemployment claims had fuelled investor expectations of a Federal Reserve interest rate cut as early as September. However, the release of inflation data on Thursday indicated persistent inflationary pressures, potentially exacerbated by tariffs implemented by the US President. This casts doubt on the likelihood of a significant rate decrease in September. Despite this, investors are now hopeful for three rate cuts by the year-end, exceeding the number previously projected in the Federal Reserve’s “Dot Plot” from June.
The euro strengthened against the US dollar on Thursday evening, trading at USD 1.1738, equivalent to EUR 0.8519 per dollar.
Gold prices saw a slight decline, with a fine ounce fetching USD 3,636 (-0.2%). This translates to EUR 99.58 per gram.
Oil prices meanwhile, experienced a notable decrease; Brent crude from the North Sea traded at USD 66.29 on Thursday evening, a drop of USD 1.20, or 1.8%, compared to the previous trading day’s closing price.
