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Julie Young
Julie Young
Articles (1177) 

US Stocks Continue Gains Thursday on Dovish Fed Outlook

S&P 500 gains 0.23% and closes with new high

The Dow Jones Industrial Average closed at 27,088.08 on Thursday with a gain of 227.88 points or 0.85%. The S&P 500 closed at 2,999.91 for a gain of 6.84 points or 0.23%. The Nasdaq Composite closed at 8,196.04 for a loss of 6.49 points or -0.08%. The VIX Volatility Index was lower at 12.93 for a loss of 0.10 points or -0.77%.

Thursday’s market movers

The S&P 500 gained 0.23% Thursday and closed at a record high. Stocks continued to gain on dovish Federal Reserve sentiment. Fed Chairman Jerome Powell’s two-day semi-annual testimony before Congress solidified the market’s expectations for a rate cut as early as July 31 following the Federal Open Market Committee’s next meeting. Futures market probabilities are now reporting a 20.4% chance of a rate cut to 1.75% to 2.00% in July and a 79.6% chance of a rate cut to 2.00% to 2.25%. The current federal funds rate is at 2.25% to 2.50%

Economic reports affecting market trading included the following:

  • The Consumer Price Index increased 0.1% in June and 1.6% year over year. The year-over-year inflation rate decreased from 1.8%.
  • The Core Consumer Price Index, excluding food and energy, increased 0.3% in June and 2.1% year over year. The year-over-year core inflation rate increased from 2%.
  • Jobless claims decreased to 209,000 from 222,000.
  • The Treasury held auctions for four-week bills at a rate of 2.135%, eight-week bills at a rate of 2.130% and 30-year bonds at a rate of 2.644%.
  • The Treasury’s June budget statement showed a deficit of -$8.476 billion for the month and a deficit of -$747.115 billion for the year.
  • Mortgage rates were stable according to Freddie Mac’s weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.75%, unchanged from the previous week. The 15-year fixed-rate mortgage averaged 3.22%, increasing from 3.18%.

In the S&P 500, industrials, financials and materials led gains. In the Dow Jones Industrial Average, the following stocks led gains:

In the Nasdaq 100, the following stocks led gains and losses as uncertainty over relations with Huawei continued despite the U.S. and China’s trade truce:

Small-cap stocks

In small caps, the Russell 2000 closed at 1,557.92 for a loss of 7.13 points or -0.46%. The S&P 600 closed at 944.35 for a loss of 4.40 points or -0.46%. The Dow Jones Small-Cap Growth Total Stock Market Index closed at 10,036.73 for a loss of 32.35 points or -0.32%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,940.63 for a loss of 5.20 points or -0.27%; the S&P 100 at 1,326.71 for a gain of 2.21 points or 0.17%; the Nasdaq 100 at 7,896.78 for a loss of 6.62 points or -0.084%; the Russell 3000 at 1,761.92 for a gain of 2.79 points or 0.16%; the Russell 1000 at 1,660.98 for a gain of 3.35 points or 0.20%; the Wilshire 5000 at 30,728.12 for a gain of 46.23 points or 0.15%; and the Dow Jones U.S. Select Dividend Index at 717.59 for a gain of 0.50 points or 0.070%.

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About the author:

Julie Young
Julie Young is a financial writer with comprehensive experience in the financial services industry. She writes about investments, investment products, financial market news and economic trends. Julie has a Master of Science in finance from Boston College and a Bachelor of Science in finance from the University of Arkansas.

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