Wall Street Sees Gains as Gold Surges to Record High Amid Rate Cut Expectations

Wall Street achieved modest gains as gold soared to new heights on Thursday, preceding an anticipated Federal Reserve interest rate cut next week. U.S. stock indexes closed higher amid mixed trading periods, influenced by recent European Central Bank rate cuts and stronger-than-expected U.S. producer price data.

Wall Street achieved modest gains and gold soared to record highs on Thursday as investors awaited an anticipated Federal Reserve interest rate cut next week.

Major U.S. stock indexes navigated mixed territory before closing higher. The gains were fueled by a rate cut from the European Central Bank, coupled with slightly hotter-than-expected U.S. producer price data. At closing, the Dow Jones Industrial Average climbed 0.58%, the S&P 500 rose 0.75%, and the Nasdaq Composite ascended by 1% due to robust tech stock performances.

MSCI's global stock gauge rose by 1.08%. The ECB announced its second rate cut in three months on Thursday, citing slowing inflation and economic growth. Despite the expected cut, the central bank remained vague on future policy moves. Attention now shifts to the Federal Reserve's upcoming policy meeting, with a modest 25 basis point rate cut widely anticipated. Meanwhile, the dollar slid against major currencies, oil prices rose nearly 3%, and gold prices hit new highs as investors turned to the precious metal in anticipation of lower interest rates.

(With inputs from agencies.)