**Market Recap: Stocks Climb as Investors Eye Interest Rates**In an impressive turnaround from a tepid start, stocks surged throughout Thursday’s trading session, building on Wednesday’s gains. The Nasdaq and the S&P 500 both notched their fourth consecutive day of growth.**Market Performance**All major indices closed firmly in positive territory. The Nasdaq leapt 174.15 points, or 1.0%, to end at 17,569.68. The S&P 500 climbed 41.63 points, or 0.8%, to settle at 5,595.76. The Dow Jones Industrial Average rose by 235.06 points, or 0.6%, to close at 41,096.77.**Driving Forces**The boost in market performance was fueled by optimism surrounding interest rates, particularly in light of the latest inflation data. Although the data diminished the likelihood of the Federal Reserve cutting rates by 50 basis points next week, lower rates are still expected by year-end.According to CME Group’s FedWatch Tool, a rate reduction of at least a full percentage point is anticipated following the Fed’s December meeting.**Economic Data Highlights**Before the market opened, the Labor Department released its producer price index (PPI) for final demand, which increased by 0.2% in August. Revised data indicated that prices were flat in July. Economists had projected a 0.1% rise in producer prices, aligning with the initial report of the previous month.Additionally, the annual rate of producer price growth decelerated to 1.7% in August, down from a downwardly revised 2.1% in July. This was slightly below the expected year-over-year increase of 1.8%.”Despite the uptick in Core CPI and a hotter-than-expected PPI, we’re not forecasting a renewed rise in inflation,” commented Nationwide Financial Markets Economist Oren Klachkin. “These figures represent the rocky path towards a 2% inflation rate. A cooling economy and easing labor market should temper price pressures.”In parallel, a separate Labor Department report showed a modest rise in initial claims for U.S. unemployment benefits for the week ending September 7th.**Sector Highlights**Gold stocks saw a significant rise alongside the precious metal’s prices, leading to a 5.8% surge in the NYSE Arca Gold Bugs Index. Networking stocks also exhibited substantial strength, reflected in a 3.5% jump in the NYSE Arca Networking Index. Notably, Netgear (NTGR) shares soared by 30.8% following an upward revision in its Q3 revenue guidance and a settled patent dispute with TP-Link Systems.Telecom, housing, and steel stocks also experienced considerable gains, mirroring the overall market uptrend.**Global Markets**Internationally, Asia-Pacific markets closed mostly higher on Thursday. Japan’s Nikkei 225 Index surged by 3.4%, while Hong Kong’s Hang Seng Index rose by 0.8%.European markets followed suit, with Germany’s DAX Index jumping by 1.0%, and the U.K.’s FTSE 100 Index and France’s CAC 40 Index climbing by 0.6% and 0.5%, respectively.**Bond Market**In the bond market, treasuries continued their slight decline from the previous session. Consequently, the yield on the benchmark ten-year note increased by 2.7 basis points to 3.680%.**Looking Ahead**Friday’s trading will feature a report on import and export prices, as well as a consumer sentiment survey which includes insights on inflation expectations.This summary encapsulates the key market movements and economic indicators shaping the financial landscape.The material has been provided by InstaForex Company – www.instaforex.com
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