Stocks rallied higher Thursday as market participants digested the Federal Reserve's latest policy decision, which suggested more rate hikes coming later this year while removing the possibility of rate cuts in 2023. The Dow Jones Industrial Average climbed over 400 points, while the S&P 500 and Nasdaq Composite rallied for a sixth-straight session.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Thursday's gains propelled the S&P 500 and Nasdaq Composite to their highest intraday level since April 2022. The S&P 500 is also on its longest winning streak since November 2021 and is on track for its strongest weekly gain since March. The broader market index is also up 23% from its October lows, marking its new bull market.
On Wednesday, the central bank maintained interest rates at their current range of 5% to 5.25%. Policymakers also signaled for two more 25-basis-point hikes this year. In a post-meeting press conference, Fed Chair jerome Powell said that the Federal Open Market Committee will use the next six weeks until its next meeting to "take into account the cumulative tightening of monetary policy."
On Thursday, the European Central Bank raised its benchmark interest rate by a quarter percentage point to 3.5%.
"Inflation has been coming down but is projected to remain too high for too long," the ECB's Governing Council said in its post-meeting statement. "Indicators of underlying price pressures remain strong, although some show tentative signs of softening."
Back in the United States for Thursday, investors were encouraged by stronger-than-expected U.S. retail sales in May. Sales rose 0.3% in May, while sales excluding auto sales rose 0.1% -- both reading topped expectations. Meanwhile, weekly jobless claims rose slightly above estimates at 262,000 for the week ended June 10.
Elsewhere, Mediterranean restaurant chain Cava
Looking ahead, market participants will continue to digest the Fed's latest policy decision and react to new consumer sentiment data out Friday morning.