Stock Market Today: S&P 500 closes at record, Dow up 260 points after upbeat economic data (2024)

Thursday's Top Reads

Here are the top stories to read ahead of Thursday trading:

Why stock-market investors are freaking out over economic data they used to ignore

Stocks are poised for something that hasn’t happened since the days of the dot-com bubble.

Hong Kong stocks lead global surge on reports of more China stimulus measures.

Sitting out August’s stock-market selloff paid off for retail investors.

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Latest Updates

Updated 5 days ago

By

Joy Wiltermuth

U.S. stocks closed higher, with the S&P 500 scoring another record close as investors await an inflation update on Friday.

The Dow Jones Industrial Average added 260.36 points, or 0.6%, ending at 42,175.11, its second-highest close ever.

The S&P 500 rose 23.11 points, or 0.4%, ending at 5,745.37, scoring its 42nd all-time closing high this year.

The Nasdaq Composite added 108.09 points, or 0.6%, ending at 18,190.29.

Traders were dialing back expectations for how big of an interest-rate cut could be on the docket at the Federal Reserve's November meeting, with the odds shifting in favor of a cut of 25 basis points on Thursday after a string of economic data pointed to resilience in the U.S. economy.

While the labor market remains the biggest focus, investors will be keeping an eye on Friday's inflation data via the Fed's preferred PCE index, which is likely to show inflation cooling futher, backing additional rate cuts.

DJIADJIA (Dow Jones Global)NASDAQ Computer IndexIXCO (Nasdaq)

5 days ago

Money-market funds pull in $120.8 billion in wake of Fed's big rate cut

By

Joy Wiltermuth

Money-market funds added another $120.8 billion in the past week, pushing their total assets to $6.42 trillion, according to the Investment Company Institute.

Both retail and institutional funds added to the inflows, according to the data, marking a reversal of the previous week's institutional outflows.

Cash yields have been declining since the Federal Reserve last week kicked off its pivot to lower interest rates, cutting its benchmark policy rate by a big 50 basis points.

The Crane 100 Money Fund Index was pegged at a yield of 4.78% on Thursday. Cash-like money-market funds had offered closer to 5% yields in the past two years.

Resilient U.S. economic data could lead to a slower Fed rate-cutting cycle going forward, while a sharp deterioration in the labor market could trigger a series of large cuts that would bring cash yields down more quickly.

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5 days ago

By

Joy Wiltermuth

The S&P 500 was headed for its 42 record close of the year on Thursday, pushed higher by a surge in stocks of companies that make materials used to support manufacturing.

The S&P 500 was up 19 points, or 0.3%, near 5,741, at last check.

If that level holds, it would eclipse its prior record finish of 5,732.93 set on Tuesday, according to Dow Jones Market Data.

The S&P 500's materials sector was up 1.8% on Thursday and up 3.4% on the week so far, according to FactSet.

DJIADJIA (Dow Jones Global)NasdaqCOMP (Nasdaq)

5 days ago

GDP growth at 3% suggests smaller Fed rate cut in November, economist says

By

Joy Wiltermuth

The Federal Reserve will likely cut interest rates by a modest 25 basis points in November given the U.S. economy's 3% annual growth rate in the second quarter, according to Christian Scherrmann, U.S. economist at DWS.

In addition to the GDP revisions, corporate profits were higher, as were personal savings, suggesting "more dry powder among consumers" given the stable inflation backdrop of late, Scherrmann wrote in emailed comments.

While that could provide some comfort to the Fed, labor-market data remain the big item that will guide its next move on rates. "We believe that, at least for now, the current dataset only warrants a 25bp cut in November," he said.

DJIADJIA (Dow Jones Global)NASDAQ Computer IndexIXCO (Nasdaq)

5 days ago

Starbucks bonds join its stock in cheering appointment of new CEO Brian Niccol

Starbucks Inc.'s stock has seen handy gains since the company appointed new Chief Executive Brian Niccol, but the company's bonds have also cheered the news.

As the following chart from data-solutions provider BondCliQ Media Services shows, spreads on the company's two more liquid bonds have tightened significantly since the news first broke. The yellow arrow highlights the move.

Stock Market Today: S&P 500 closes at record, Dow up 260 points after upbeat economic data (1)

Starbucks Corp.SBUX (U.S.: Nasdaq)

5 days ago

By

William Watts

Materials stocks were in the driver's seat Thursday, with the sector leading S&P 500 gainers with a 2% gain.

That's good enough for its best day since Nov. 14 and to put the sector on track for an all-time closing high, according to Dow Jones Market Data. The Materials Select Sector SPDR ETF is leading sector ETFs with a 3.2% gain for the week but has been a bit of a laggard for the year to date, with a gain of 13.4% versus a 20.4% gain for the S&P 500-tracking SPDR S&P 500 Trust.

Materials Select Sector SPDR ETFXLB (U.S.: NYSE Arca)

5 days ago

By

Joy Wiltermuth

Shrinking cash yields and a steady bond market could be a tailwind for markets.

That's Richard Steinberg, chief market strategist at the Colony Group, saying that Wall Street estimates for the S&P 500 to hit 6,000 could benefit from investors moving out of cash in the wake of the Federal Reserve's first rate cut in four years.

"But it's going to have to be a perfect storm," Steinberg said, adding that bond yields will need to fall to help push stocks higher, particularly after the big rally in "unloved" equity sectors in recent weeks.

Bonds could remain volatile, however, with jitters around November's presidential election, potential changes to tax policies and expectations for more deficit spending, he said.

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5 days ago

Treasury yield-curve spread is narrowing again

By

Joy Wiltermuth

The gap between two key plots on the Treasury yield curve was getting smaller on Thursday following a batch of mostly positive economic data.

The policy-sensitive 2-year Treasury yield was trading around 3.61% on Thursday, climbing from a roughly 3.55% one-year low set earlier in the week, according to Dow Jones Market Data.

The Treasury yield curve turned positive in early September after its longest stretch ever in inverted territory, sending a fresh recession signal. The 10-year Treasury yield's spread relative to the 2-year rate was 18 basis points on Thursday, according to Dow Jones Market Data, based on preliminary figures.

It touched 22 basis points Wednesday, its highest level since June 8, 2022, according to Dow Jones Market Data. It isn't clear if this inversion will end up being a false recession signal or not.

U.S. 2 YrBX:TMUBMUSD02Y (XTUP)U.S. 10 YrBX:TMUBMUSD10Y (XTUP)

5 days ago

Gold tallies longest winning streak since April, settles at a record high

By

Myra P. Saefong

Gold futures finished at another record high Thursday, up for a seventh consecutive session — the longest winning streak since April, with analysts attributing the metal's strength to China's economic stimulus plans and safe-haven demand.

On Comex, December gold rose $10.20, or 0.4%, to settle at $2,694.90 an ounce after climbing to as high as $2,708.70, the highest intraday level on record for a most-active contract.

"Technically, gold is still in a strong uptrend, so it's tough to predict just how high the metal could climb," said Fawad Razaqzada, market analyst at City Index and FOREX.com, in market commentary. "However, be prepared for at least a short-term pullback or consolidation. Once gold retraces a bit, it could continue its upward march towards my long-term target of $3,000."

Gold Continuous ContractGC00 (NYM)Gold Dec 2024GCZ24 (NYM)

5 days ago

Bitcoin rises above $65,000 to nearly 2-month high

By

Frances Yue

Bitcoin rose 3.5% on Thursday to above $65,000, after Bloomberg on Wednesday reported that China’s government was considering a 1 trillion yuan ($142 billion) capital injection into the country’s big banks to encourage lending after the People’s Bank of China revealed a swathe of stimulus measures on Tuesday.

The largest cryptocurrency rose to as high as $65,811 on Thursday, its loftiest level since July 31, according to Dow Jones Market Data.

Bitcoin is up 55.4% year to date, while it is still down 11.6% from its all-time high at $73,798 reached in March.

Bitcoin USDBTCUSD (Kraken)
Stock Market Today: S&P 500 closes at record, Dow up 260 points after upbeat economic data (2024)
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