Stocks Surge as Federal Reserve Signals Rate Cuts
Stocks gained on Thursday as the Federal Reserve signaled upcoming interest rate cuts. The Dow Jones, S&P 500, and Nasdaq all saw increases. The Fed's minutes indicated a likely September rate cut, validated by recent unemployment data. Oil prices stabilized, and global stocks continued to recover.
On Thursday, stocks gained ground as the Federal Reserve indicated that U.S. interest rate cuts are imminent. The Dow Jones Industrial Average rose 0.20% to 40,973, the S&P 500 gained 0.33% to 5,639, and the Nasdaq Composite increased by 0.43% to 17,995.49.
The Fed's minutes, released on Wednesday, suggested a likely September cut, aligning with market expectations. New unemployment benefits applications rose but remained consistent with a gradual labor market cooldown.
Global stocks have been rebounding, with European shares up 0.6%. U.S. crude oil rose to $72.28 a barrel, and Brent climbed to $76.42 per barrel. The dollar index remained subdued, while interest rate futures priced a 25-basis-point cut from the Fed next month.
(With inputs from agencies.)
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