At market close, the Dow Jones Industrial Average was up 0.6% to 41,097, while the Nasdaq Composite rose 1.0% to 17,570. The S&P 500 traded up 0.8% to 5,596, a gain of 0.7% from the Stockholm Stock Exchange’s closing.
The main indices continued to trend upwards following significant gains on Wednesday, with the S&P 500 offering the strongest intraday recovery in over two years.
On the macroeconomic front on Thursday, it was noted that producer prices in the US rose by 0.2% in August compared to the previous month. PPI increased by 1.7% compared to the same month last year.
Analysts had expected prices to increase by 0.1% during the month and by 1.8% compared to the same month last year, according to Trading Economics’ consensus forecast.
Investors also focused on the number of initial jobless claims in the US, which amounted to 230,000 people – in line with expectations.
Among individual stocks in trading, American vaccine developer Moderna plummeted around 12% after announcing cost savings in research and development of $1.1 billion by 2027. Resources will now be directed towards the commercialization of existing products.
Moderna’s stock has significantly declined from its peak levels in 2021. Since the latest peak in May 2024, the journey has also been negative with a loss of over 50%.
Several well-known tech names, on the other hand, contributed strongly to the overall market sentiment, with AI giants Nvidia and Alphabet increasing by 1.9% and 2.3% respectively, while Meta Platforms was up 2.7%.
Furthermore, Alaska Air Group rose by 1.1% after the airline raised its outlook for the third quarter, citing strong summer demand.
On the other hand, sector colleague Delta Air Lines lowered its revenue forecast for the third quarter, following the IT chaos triggered by Crowdstrike’s crash in July. The stock closed unchanged.
In the bond market, the yield on the US ten-year was up 3 basis points to 3.68%.
Analysis:
The financial markets showed positive momentum with major indices posting gains. However, Moderna faced a significant setback while tech giants like Nvidia and Alphabet saw strong performance. It is important for investors to stay updated on market trends and individual stock movements to make informed decisions about their portfolios. Understanding macroeconomic indicators like producer prices and jobless claims can also provide valuable insights into the overall economic health.