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Wall Street closed sharply higher on Thursday, led by tech stocks. With producer-side inflation numbers coming in soft, investor mood remained upbeat. Two of the three major stock indexes ended in the green, while one ended virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 2.43 points, or less than 0.1%, to close at 38,459.08. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in positive.
The tech-heavy Nasdaq Composite gained 271.84 points, or 1.7%, to close at 16,442.20.
The S&P 500 advanced 38.42 points, or 0.7%, to close at 5,199.06. Six of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) rose 2%, 0.9% and 0.8%, respectively, while the Financials Select Sector SPDR (XLF) slid 0.6%.
The fear-gauge CBOE Volatility Index (VIX) decreased 5.6% to 14.91. A total of 10.4 billion shares were traded on Thursday, lower than the last 20-session average of 11.5 billion. Advancers outnumbered decliners by a 1.12-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered declining ones by a 1.23-to-1 ratio.
PPI Comes in Softer Than Expected
The U.S. Bureau of Labor Statistics reported on Thursday that Producer Price Index (CPI) increased 0.2% in March on a seasonally adjusted basis after rising 0.6% in February. Core CPI, which excludes food and energy prices, rose 0.2% after increasing 0.3% in February.
Over the past few weeks, investors have eagerly awaited signals from Fed officials about when the rate cuts would start. While hotter-than-expected consumer price index numbers dampened investor mood in the previous session and the markets were on a free fall, the producer-side number helped lift spirits.
Even as a couple of important Fed officials commented on the day that a rate cut might still be months away and an intervention might not be necessary at the current juncture, the PPI numbers were more supportive of a soft landing of the economy.
Mega-cap growth stocks like tech stocks were the biggest winners in the session, as they rejoice in every opportunity when a soft landing is indicated. The “Magnificent 7” stocks led the rally.
The Labor Department said on Thursday that initial jobless claims fell to 211,000, decreasing 11,000 for the week ending Apr 6. The previous week's level was revised up by 1,000 from 221,000 to 222,000. The four-week moving average was 214,250, marking a fall of 250 from the previous week. The prior week's average was revised up by 250 to 214,500.
Continuing claims came in at 1,817,000 for the week ending Mar 30, increasing 28,000 from the previous week’s revised level. The previous week's level was revised down by 2,000 from 1,791,000 to 1,789,000. The four-week moving average was 1,802,750, an increase of 3,500 from the previous week's revised average. Last week's average was revised down by 500 from 1,799,750 to 1,799,250.
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Stock Market News for Apr 12, 2024
Wall Street closed sharply higher on Thursday, led by tech stocks. With producer-side inflation numbers coming in soft, investor mood remained upbeat. Two of the three major stock indexes ended in the green, while one ended virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 2.43 points, or less than 0.1%, to close at 38,459.08. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in positive.
The tech-heavy Nasdaq Composite gained 271.84 points, or 1.7%, to close at 16,442.20.
The S&P 500 advanced 38.42 points, or 0.7%, to close at 5,199.06. Six of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) rose 2%, 0.9% and 0.8%, respectively, while the Financials Select Sector SPDR (XLF) slid 0.6%.
The fear-gauge CBOE Volatility Index (VIX) decreased 5.6% to 14.91. A total of 10.4 billion shares were traded on Thursday, lower than the last 20-session average of 11.5 billion. Advancers outnumbered decliners by a 1.12-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered declining ones by a 1.23-to-1 ratio.
PPI Comes in Softer Than Expected
The U.S. Bureau of Labor Statistics reported on Thursday that Producer Price Index (CPI) increased 0.2% in March on a seasonally adjusted basis after rising 0.6% in February. Core CPI, which excludes food and energy prices, rose 0.2% after increasing 0.3% in February.
Over the past few weeks, investors have eagerly awaited signals from Fed officials about when the rate cuts would start. While hotter-than-expected consumer price index numbers dampened investor mood in the previous session and the markets were on a free fall, the producer-side number helped lift spirits.
Even as a couple of important Fed officials commented on the day that a rate cut might still be months away and an intervention might not be necessary at the current juncture, the PPI numbers were more supportive of a soft landing of the economy.
Mega-cap growth stocks like tech stocks were the biggest winners in the session, as they rejoice in every opportunity when a soft landing is indicated. The “Magnificent 7” stocks led the rally.
Consequently, shares of Apple Inc. (AAPL - Free Report) and NVIDIA Corporation (NVDA - Free Report) advanced 4.3% and 4.1%, respectively. NVIDIA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
The Labor Department said on Thursday that initial jobless claims fell to 211,000, decreasing 11,000 for the week ending Apr 6. The previous week's level was revised up by 1,000 from 221,000 to 222,000. The four-week moving average was 214,250, marking a fall of 250 from the previous week. The prior week's average was revised up by 250 to 214,500.
Continuing claims came in at 1,817,000 for the week ending Mar 30, increasing 28,000 from the previous week’s revised level. The previous week's level was revised down by 2,000 from 1,791,000 to 1,789,000. The four-week moving average was 1,802,750, an increase of 3,500 from the previous week's revised average. Last week's average was revised down by 500 from 1,799,750 to 1,799,250.