WALL Street stocks shook off early weakness and finished higher on Thursday, adding to weekly gains as markets eye an expected US Federal Reserve interset rate cut next week.
The gains followed benign wholesale inflation data and unremarkable weekly jobless claims, along with another interest rate cut by the European Central Bank.
“The data helped validate the soft landing argument,” said Briefing.com analyst Patrick O’Hare, who said investors were also motivated by a “fear of missing out” on gains.
The Dow Jones Industrial Average finished up 0.6 per cent at 41,096.77.
The broad-based S&P 500 gained 0.8 per cent to 5,595.76, while the tech-rich Nasdaq Composite Index jumped 1.0 per cent to 17,569.68.
US wholesale prices rose by 0.2 per cent in August, putting the benchmark on an annual basis at 1.7 per cent, down from a revised 2.1 per cent last month.
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However, when volatile food and energy components were stripped out, wholesale prices rose by 0.3 per cent, topping estimates.
The dynamic is similar to Wednesday’s consumer price index report, which analysts said kept the Fed on track to cut interest rates next week.
Among individual companies, Moderna plunged 12.4 per cent after announcing it will reduce its annual research and development expenses by US$1.1 billion starting in 2027.
Wells Fargo dropped 4.0 per cent after the Office of the Comptroller of the Currency announced an enforcement action that will require the bank to fix defects in its financial crimes risk management and anti-money laundering controls.
Norfolk Southern rose 0.3 per cent as it named Mark George as CEO, replacing Alan Shaw who is leaving the rail company amid an investigation into a consensual relationship with another executive that violated company rules.
Kroger jumped 7.2 per cent as it reported better-than-expected profits despite flat sales. The supermarket chain expressed confidence in its legal position as it fights an antitrust case brought by US regulators over its proposed acquisition of Albertson’s. AFP
