The U.S. stock market rallied on Thursday, closing higher on a wave of optimism surrounding potential Federal Reserve interest rate cuts. The S&P 500 index climbed over 1%, gaining approximately 100 points. The Dow Jones Industrial Average rose by 1.28%, reaching 42,032.26, while the tech-heavy NASDAQ Composite Index surged by a robust 2.65%, reaching 18,038.75. This positive sentiment was driven by hopes that the Federal Reserve might soon ease its monetary policy, a move that could benefit the economy and the stock market.
Information technology shares were the clear leaders, surging by 3.3% on the day. This sector’s strength reflects investor confidence in the growth potential of technology companies. In contrast, utilities shares lagged behind, falling by 0.5%.
Among individual stocks, several companies experienced notable price movements. Edgewise Therapeutics, Inc. (EWTX) saw its shares skyrocket by 54% to $29.42 after announcing positive data from its Phase 1 trial for EDG-7500 in healthy subjects. Signing Day Sports, Inc. (SGN) shares surged by a remarkable 265% to $0.4737 following the company’s announcement of an acquisition of sports gaming technology company Swifty Global. Mobileye Global Inc. (MBLY) shares also climbed, gaining 17% to $13.59, after Intel Corp (INTC) stated that it does not intend to divest its majority stake in the company.
However, not all companies enjoyed positive momentum. Haoxi Health Technology Limited (HAO) shares plummeted by 75% to $0.76 after the company announced a $12 million underwritten follow-on public offering. Progyny, Inc. (PGNY) saw its shares decline by 33% to $16.47 after a client exercised an option to terminate its services agreement. Vivos Therapeutics, Inc. (VVOS) shares also fell, dropping 21% to $3.26 following the company’s announcement of a registered offering of common stock.
In the commodity market, oil prices rose by 1.4% to $71.93, while gold prices climbed by 0.6% to $2,614.30. Silver prices also saw an increase, rising by 2.2% to $31.37. Copper prices advanced by 1.2% to $4.35.
European markets echoed the positive sentiment, with the eurozone’s STOXX 600 index gaining 1.38%. Germany’s DAX index climbed 1.55%, while France’s CAC 40 jumped by 2.29%. Spain’s IBEX 35 Index rose 0.80%, and London’s FTSE 100 gained 0.91%. Notably, the Bank of England maintained its Bank Rate at 5% during its September meeting, following a 25 basis point cut in August. The current account surplus in the Eurozone also expanded to €48 billion in July, up from €25.5 billion in the same period last year.
Asian markets also ended the day in the green. Japan’s Nikkei 225 gained 2.13%, Hong Kong’s Hang Seng Index surged 2%, China’s Shanghai Composite Index rose 0.69%, and India’s BSE Sensex climbed 0.29%. Hong Kong’s unemployment rate remained unchanged at 3% in the three months ending August. Meanwhile, the Hong Kong Monetary Authority reduced its base rate by 50 basis points to 5.25% at its recent meeting.
On the economic front, the U.S. reported a current account deficit of $266.8 billion in the second quarter, wider than the $241 billion gap in the previous period and exceeding market expectations of a $260 billion deficit. U.S. initial jobless claims declined by 12,000 from the prior week to 219,000 in the week ending September 14, beating market forecasts of 230,000. The Philadelphia Fed Manufacturing Index surged to 1.7 in September, rebounding from -7 in the previous month and exceeding market estimates of -1. U.S. natural-gas stocks increased by 58 billion cubic feet during the week ending September 13, outperforming market expectations of a 53 bcf gain.
