Stocks rose Thursday as investors continued to buy the dip in tech stocks ahead of the Federal Reserve's policy meeting next week. The Dow Jones Industrial Average rose over 200 points, while the S&P 500 Index and Nasdaq Composite added 0.75% and 1%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index (NYSE: SPY): +0.75% or +41.63 points to 5,595.76
Dow Jones Industrial Average (NYSE: DIA): +0.58% or +235.06 points to 41,096.77
Nasdaq Composite Index (NASDAQ: QQQ): +1.00% or +174.15 points to 17,569.68
Moving Markets:
Wholesale Prices rose in August about in line with analyst expectations, the Labor Department reported Thursday, offering another positive inflation report ahead of the central bank's Federal Open Market Committee (FOMC) meeting.
The producer price index (PPI) increased 0.2% on the month and 1.7% annually, both coming in-line with estimates. Excluding food and energy, core PPI came in slightly higher than consensus estimates at 0.3% and excluding food, energy and trade, the annual rate was 3.3%.
"With PPI basically repeating yesterday's CPI reading and jobless claims in line with expectations, the decks have been cleared for the Fed to kick off a rate-cutting cycle," said Chris Larkin, managing director of trading and investing for E-Trade, quoted by CNBC. "The markets are anticipating an initial 0.25% cut, but the discussion will soon turn to how far and fast the Fed is likely to trim rates over time."
In Single-Stock News:
Gilead Sciences (NASDAQ: GILD) twice-yearly vaccine lenacapavir reduced HIV infections by 96% in a second large study, the biotech announced Thursday. The company said 99.9% of participants who received lenacapavir did not acquire HIV, with two cases among 2,180 people.
"Now that we have a comprehensive dataset across multiple study populations, Gilead will work urgently with regulatory, government, public health and community partners to ensure that, if approved, we can deliver twice-yearly lenacapavir for PrEP worldwide, for all those who want or need PrEP," said Gilead CEO Daniel O'Day in a statement.
Moderna (NASDAQ: MRNA) announced Thursday it plans to cut about $1.1 billion in expenses by 2027, with the biotech expecting 10 new product approvals through 2027. The company said it will also pause work on some products in its pipeline and end development on others, as it aims to "pace" new research and development spending.
McDonald's (NYSE: MCD) announced it will extend its $5 value meal into December in most U.S. markets, offering items like McDouble or McChicken sandwich, small fries, four-piece chicken nuggets and a small drink in the deal.
"Together with our franchisees, we're committed to keeping our prices as affordable as possible, which is why we're doubling down with even more ways to save," Joe Erlinger, president of McDonald's U.S., said in a statement.
For Friday:
Market participants will turn their attention towards a preliminary consumer sentiment reading for September as investors look ahead towards the Fed's meeting next week.