Stocks soared higher Thursday, with the Dow Jones Industrial Average and S&P 500 notching fresh closing highs, as market participants were encouraged by the Federal Reserve's half percentage point rate cut. The Dow climbed over 500 points, rising above the 42,000 threshold for the first time, while the S&P 500 marked its first close above 5,700. The Nasdaq Composite also advanced 2.5%.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
On the Economic Front:
Sales of Previously Owned Homes fell by a less-than-expected 2.5% in August month-to-month to a seasonally adjusted annualized rate of 3.86 million units, according to the National Association of Realtors (NAR). Sales were 4.2% lower annually. The median price of previously own home rose 3.1% year-over-year to $416,700 in August, marking the highest ever price for the month.
"Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months," said Lawrence Yun, chief economist at NAR, in a statement.
Initial Jobless Claims came in at a lower-than-expected total for the week ending Sept. 14, the Labor Department reported Thursday, marking its lowest total since May 18. The print was also 12,000 below the previous week's upwardly revised total. Continuing unemployment claims, which are tracked a week behind, ticked lower to 1.829 million.
In the News:
SLB
"As we navigate the delicate balance between energy production and decarbonization, generative AI is emerging as a crucial catalyst for change," SLB CEO Olivier Le Peuch said in a release.
Darden Restaurants
"On-demand delivery is increasingly a core expectation for consumers," said Sarfraz Maredia, vice president of delivery, head of Americas at Uber Eats, in a release. "People also expect a great experience, especially when it's from a brand they love like Olive Garden, and that doesn't change whether it's at the restaurant or at home. We're confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel."
Progyny
"The Client, which represents approximately 670,000 members as of June 30, 2024, comprised 12% and 13% of the Company's revenue for the six-month period ending June 30, 2024, and the twelve-month period ending December 31, 2023, respectively," CEO Peter Anevski wrote in the filing.
For Friday:
Investors will trade ahead of more inflation data slated for next week, including August's personal consumption expenditures reading and September's S&P flash U.S. services and manufacturing purchasing managers' indexes and consumer sentiment readings.