US markets rallied on Thursday, fueled by encouraging inflation data that tempered expectations for further aggressive rate hikes by the Federal Reserve. The Dow Jones Industrial Average closed at 47,952 points, a 0.1% increase from the previous day’s close. The broader S&P 500 advanced 0.8% to approximately 6,775 points, while the Nasdaq 100 surged 1.5% to around 25,019 points, reflecting significant gains in the technology sector.
The reported deceleration in inflation has been met with cautious optimism, yet analysts are urging restraint due to the ongoing US government shutdown. This partial cessation of operations presents a considerable hurdle to data collection, potentially skewing indicators, particularly concerning critical expense categories like housing. The absence of updated housing cost data introduces an element of uncertainty surrounding the accuracy of the reported inflation figures. Critics contend that the shutdown’s impact necessitates a more nuanced interpretation of the latest economic releases.
However, sentiment was bolstered by a renewed wave of enthusiasm surrounding the artificial intelligence boom. Micron Technology, a leading semiconductor manufacturer, exceeded earnings expectations and revised its outlook upward, providing a tangible boost to investor confidence in the industry’s future. This performance underscores the continued belief in AI-driven growth and its impact on the chip sector.
The euro weakened slightly against the dollar, trading at $1.1725, with the dollar fetching €0.8529. Gold experienced a minor decline, falling to $4,332 per fine ounce (-0.2%), equivalent to €118.80 per gram.
Crude oil prices edged up modestly, with Brent North Sea crude fetching $59.69 per barrel – a one-cent increase from Wednesday’s closing price. The slight increase in oil prices may be attributed to a combination of factors, including ongoing geopolitical tensions and a cautiously optimistic outlook on global demand.