Wall Street indexes end higher as data keeps rate cut views intact
The three major U.S. stock indexes ended solidly higher on Thursday as labor market data did not change expectations for an interest rate cut by the Federal Reserve this month and investors awaited Friday's U.S. monthly jobs report.
Shares of chip company Broadcom considered a major artificial intelligence player, closed higher ahead of its quarterly results, due after the closing bell.
Also helping the market were gains in shares of Amazon.com and Meta Platforms.
Data earlier showed that the number of Americans filing new applications for unemployment benefits increased more than expected last week, while hiring by private employers slowed in August, further evidence that labor market conditions were softening.
But investors are especially keen to see the U.S. monthly jobs report due on Friday.
According to preliminary data, the S&P 500 gained 53.48 points, or 0.82%, to end at 6,501.21 points, while the Nasdaq Composite gained 207.26 points, or 0.96%, to 21,704.99. The Dow Jones Industrial Average rose 348.71 points, or 0.77%, to 45,619.94.
Investors are pricing in a 95% probability of a 25 basis-point cut, CME's FedWatch Tool showed. The move was largely expected after July's bleak payrolls figures and Powell's dovish comments.
Source : Reuters
