The S&P 500 Index closed up 1.14% on Thursday, while the Dow Jones Industrial Average rose 0.61% and the Nasdaq 100 Index gained 1.73%. The upward trend in stock indexes followed a nearly 1% drop in WTI crude oil prices, alleviating inflation concerns and contributing to a decline in the 10-year T-note yield, which fell 7 basis points to 4.94% following the Fed’s recent 25 basis point rate hike.
Key economic data showed that weekly initial jobless claims fell by 10,000 to an 8-week low of 196,000, defying expectations of an increase to 207,000. Conversely, August housing starts dropped 2.6% month-over-month to 1.275 million, below predictions of an increase, while pending home sales rose unexpectedly by 0.3%.
As of Thursday, markets are pricing in a 53% chance of another 25 basis point Fed rate hike at the upcoming FOMC meeting on October 27-28, amidst mixed economic signals and easing global oil supply concerns.
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