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US markets

• Wall Street's main indexes surged due to inflation data and expectations of a Federal Reserve rate cut.
• The producer price index rose by 0.2% in August, indicating a soft landing for the economy.
• The Dow Jones, S&P 500, and Nasdaq Composite all saw significant gains, with all 11 S&P 500 sectors ending higher.

Wall Street surged Thursday as new inflation data fueled optimism for a 25-basis point rate cut by the Federal Reserve, the first since March 2020. The possibility of this cut has been a key driver behind the recent market rally.
The Producer Price Index (PPI) for final demand rose 0.2% in August, in line with expectations, while the core PPI, which strips out food and energy, increased 0.3%, slightly above the 0.2% forecast. Steady jobless claims of 230,000 for the week ending September 7 further signaled a "soft landing" for the U.S. economy.
"This week's data confirms we're heading for a soft landing," said Peter Tuz, president of Chase Investment Counsel. "Investors are energized by the prospect of rate cuts, especially in growth sectors."
Market Gains Broadly Across Sectors
On Thursday, the Dow Jones Industrial Average climbed 235.06 points (0.58%) to 41,096.77, the S&P 500 rose 41.63 points (0.75%) to 5,595.76, and the Nasdaq Composite jumped 174.15 points (1.00%) to 17,569.68. The small-cap Russell 2000 outpaced the major indexes, gaining 1.2%, a performance Chuck Carlson, CEO of Horizon Investment Services, attributed to bargain hunting and sensitivity to potential rate cuts.
All 11 S&P 500 sectors ended higher, with communication services leading the charge, up 2%. Warner Bros Discovery soared 10.4% after Charter Communications announced an ad-supported version of its streaming services Max and Discovery+ would be available to customers. Charter shares climbed 3.6%.
Winners and Losers
Among Thursday's losers, vaccine maker Moderna tumbled 12.4% after forecasting 2024 sales below analyst estimates, hitting its lowest level since November. Conversely, Kroger jumped 7.2% after beating quarterly earnings estimates and raising its annual sales outlook, highlighting the resilience of certain sectors.
Gold miners also saw a boost as spot gold hit a record high. The Arca Gold BUGS index surged 5.8%, mirroring historical trends where gold and mining stocks rise during economic uncertainty.
On the NYSE, advancing stocks outpaced decliners 3.45-to-1, with 405 new highs and 46 new lows. The Nasdaq saw 2,665 stocks gain while 1,543 declined. The S&P 500 posted 37 new 52-week highs, while the Nasdaq Composite recorded 73 highs and 76 lows.
As the Federal Reserve's September 17-18 meeting approaches, investors are watching closely to see how the market reacts to a potential rate cut.