All three major U.S. equity benchmarks — the S&P 500, Nasdaq 100, and Dow Jones — surged to fresh record highs on Thursday, as investors piled into risk assets on growing bets that interest rates will soon fall.
The rally came despite gloomy economic data: U.S. inflation accelerated to 2.9% year-over-year in August, while weekly jobless claims spiked to 263,000 – their highest level since October 2021.
Yet, investors brushed aside the stagflation concerns, wagering that the Federal Reserve will prioritize stabilizing a weakening labor market over containing price pressures.
By midday in New York, the S&P 500 advanced 0.8% to 6,584, the Nasdaq 100 climbed 0.7% to break above the 24,000 mark, and the Dow Jones Industrial Average jumped 1.3% to 46,080.
Speculators fully price in a 25-basis-point rate cut next week and see over a 90% chance of another in October, according to the CME FedWatch tool.
CFTC-regulated betting platform Kalshi assigns a 63% chance that another cut will be delivered in December 2025.
All 11 S&P sectors traded higher, led by cyclical groups such as consumer discretionary, materials, and financials.
The shift toward a lower-rate outlook also rippled through bonds, sending Treasury yields to five-month lows. The 10-year benchmark yield fell to 4%, its lowest level since early April.
The risk-on mood briefly halted gold's record-setting run, with the metal slipping 0.2% to $3,630. Silver extended gains, climbing 1.4% to $41.70 an ounce, while crude oil dropped 2%. Bitcoin (CRYPTO: BTC) edged 0.3% higher to $114,000.
Thursday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| • Russell 2000 | 2,412.60 | 1.5% |
| • Dow Jones | 46,087.94 | 1.3% |
| • S&P 500 | 6,585.53 | 0.8% |
| • Nasdaq 100 | 24,012.41 | 0.7% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) soared 0.8% to $604.49.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.2% to $461.58.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) edged 0.7% higher to $584.72.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 1.5% to $239.94.
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 1.3%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, up 0.1%.
S&P 500’s Top 5 Movers
| Company Name | % Change |
|---|---|
| Synopsys, Inc. (NASDAQ:SNPS) | +11.11% |
| Centene Corporation (NYSE:CNC) | +10.66% |
| Micron Technology, Inc. (NASDAQ:MU) | +9.57% |
| Warner Bros. Discovery, Inc. (NASDAQ:WBD) | +7.30% |
| Lam Research Corporation (NASDAQ:LRCX) | +7.28% |
S&P 500’s Top 5 Losers
| Company Name | % Change |
|---|---|
| Delta Air Lines, Inc. (NYSE:DAL) | -4.30% |
| Oracle Corporation (NYSE:ORCL) | -3.38% |
| Netflix, Inc. (NASDAQ:NFLX) | -2.83% |
| CDW Corporation (NASDAQ:CDW) | -2.83% |
| Advanced Micro Devices, Inc. (NASDAQ:AMD) | -2.21% |
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Image created using artificial intelligence via Midjourney.