by Noel Randewich and Ankika Biswas
(Reuters) – The New York Stock Exchange ended higher on Thursday, as the publication of stronger-than-expected economic data eased fears of a recession, without fueling fears of a rate hike by the US Federal Reserve (Fed) at its meeting next week.
The Dow Jones index gained 0.96%, or 331.58 points, to 34,907.11 points.
The broader S&P-500 gained 37.66 points, or 0.84%, to 4,505.10 points.
The Nasdaq Composite advanced 112.47 points (0.81%) to 13,926.05 points.
Data released by the Commerce Department showed that U.S. retail sales rose more than expected in August, rising 0.6%.
The Labor Department, for its part, announced that weekly unemployment claims had increased to 220,000 during the week ending September 9.
He also indicated that producer prices had increased by 0.7% over one month and 1.6% over one year, above economists’ expectations.
“The economic data released today confirms that we are heading towards a soft landing, without the Fed thinking that it will have to make a few additional rate hikes,” said Ross Mayfield, analyst at Baird. “Overall, it’s pretty optimistic.”
Traders consider there is a 97% chance that the Federal Reserve will maintain its rates at its meeting on September 20, the probability of a pause during the November meeting is now 67%, according to the CME Fedwatch barometer Group.
The session was marked by the stock market debut of Arm, the largest IPO in the United States since 2021.
The British chip designer owned by Japanese conglomerate SoftBank Group Corp saw its shares trade at a price of $56.1, above the company’s $51 per share target.
HP declined after Berkshire Hathaway, Warren Buffett’s group, sold 5.5 million shares of the PC manufacturer.
Visa was also down after announcing that it would submit to its shareholders a proposal to convert class B shares into class C or A.
Moderna, for its part, made progress after the European regulator’s advisory committee recommended authorizing the new version of the laboratory’s COVID-19 vaccine.
(With the contribution of Shristi Achar A and Medha Singh; Camille Raynaud)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
