Stocks today: S&P 500, Nasdaq rise amid more signs of deflation

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U.S. stocks rose on Thursday as investors digested fresh inflation and labor data that tested long-held expectations for a quarter-point interest rate cut next week.

The S&P 500 ( ^GSPC ) rose 0.5%, while the Nasdaq Composite ( ^IXIC ) rose 0.7%, led by a sharp increase in closing prices driven by a technology boost. The Dow Jones Industrial Average (^DJI) rose 0.2 percent.

The market builds on a seesaw Wednesday that ended with renewed enthusiasm for technologies. Meanwhile, this week’s latest key data bolstered bets on a 25 basis point less rate cut by the Fed next week rather than a further 0.5% cut.

Earlier on Thursday, the August producer price index provided another sign of easing inflationary pressures. Wholesale prices rose at a 0.2 percent month-on-month rate, slightly higher than economists had expected. On a year-over-year basis, PPI rose 1.7% in line with expectations, while July’s reading fell. This followed August’s consumer price reading, which also showed a gradual cooling.

Read more: Federal Reserve forecast for 2024: What experts say about the likelihood of interest rate cuts

Meanwhile, data from the Labor front showed that initial jobless claims rose more than expected to 230,000 last week, an increase of 2,000 from the previous weekly period. Traders’ odds of a 25-point decline rose to 87 percent after the reports, up from 50 percent a few days ago.

Shares of Moderna ( MRNA ) fell as much as 17% after the vaccine maker cut its annual revenue outlook for 2025. The company also said it would cut its annual research and development budget.

live8 updates

  • Oil jumped more than 2 percent as Hurricane Francine disrupted production

    Oil prices rose for a second straight session on Thursday after crude was disrupted in the Gulf of Mexico by Hurricane Francine.

    West Texas Intermediate (CL=F) rose nearly 3 percent to $69 a barrel, while Brent (BZ=F) settled around $72.

    Francine was downgraded from a hurricane to a hurricane hours after landfall. That caused a shutdown of about 670,000 barrels per day in the Gulf of Mexico, according to the U.S. Environmental Safety and Enforcement Administration.

  • Gold hit record highs as investors await interest rate cuts by the Federal Reserve

    Gold rose to record highs on Thursday as investors await the Federal Reserve’s interest rate cut next Wednesday. Year-to-date, the precious metal is up more than 24%, outperforming the broader market.

    Gold futures (GC=F) jumped more than 1 percent to $2,576 an ounce. Silver futures (SI=F) also jumped 3 percent to above $30 an ounce.

  • GM and Hyundai are exploring joint development vehicles to unlock scale

    Yahoo Finance’s Pras Subramanian reports:

    General Motors ( GM ) and Hyundai ( HYMTF ) signed an agreement Thursday morning to jointly review various vehicles, powertrains and technologies that show how far the Korean automakers have come in the past 30 years.

    According to the non-binding memorandum of understanding signed by Hyundai Motor Group Chief Executive Officer Yuson Chung and General Motors CEO Mary Barra, the two companies will collaborate on projects including the production of passenger and commercial vehicles and propulsion technologies such as engines. They will develop the gas burner. and clean energy options, which include electric and hydrogen options.

    The two auto giants said they would explore opportunities to combine sources for battery raw materials, steel and other commodities.

    Read more here.

  • Mortgage payments cheaper than a year ago thanks to rate cuts: Redfin

    Buying a home is more affordable than it was a year ago, according to new data from Redfin.

    Redfin found that the average monthly mortgage payment in the four weeks ending in September rose to $2,558. This is a decrease of 1.3% compared to last year.

    A big help has been the reduction in mortgage rates. The average 30-year fixed-rate mortgage rate fell to 6.2 percent this week, according to data from Freddie Mac. Mortgage rates have fallen by more than half a percent in the past six weeks as investors expect a rate cut by the Federal Reserve. They are at their lowest level since February 2023.

    However, housing prices have not come down from their peak. Data from Redfin shows the median sales price is $388,085, up 3.7 percent from last year. Home prices remain high due to lack of supply. That, plus buyers’ expectations that rates will drop after the Federal Reserve eases monetary policy, continues to keep the housing market in limbo.

  • Apple received FDA approval for AirPods hearing aid software

    Apple ( AAPL ) has received approval from the US Food and Drug Administration for its hearing aid software for use in AirPods.

    The feature was first unveiled at the tech giant’s annual product launch event in California earlier this week.

    After installation and customization, the over-the-counter hearing aid software is intended to amplify sounds for people 18 years of age or older with mild to moderate hearing loss, according to the FDA statement.

  • ‘No big surprises’: Why Apple shares haven’t moved much on iPhone 16 news

    Yahoo Finance’s Madison Mills reports:

    Apple’s artificial intelligence offering, Apple Intelligence, was the star of the annual iPhone event on Monday.

    But for investors, the slow rollout of Apple Intelligence could be problematic. While Apple’s iPhone 16 hits stores on September 20, the software update required for Apple Intelligence won’t be available to US English users until October.

    The disconnect between hardware and software may be one reason why Apple stock hasn’t moved much on the news. Shares of the iPhone maker fell about 0.9% during the company’s “Glowtime” presentation in Cupertino, California, and rose less than 1% in the three days following the event.

    Read more here.

  • Delta offers strong outlook despite summer technical setback

    Shares of Delta ( DAL ) jumped before falling into negative territory on Thursday after the airline said its full-year profit would come in at the midpoint of its previous forecast range despite a computer glitch earlier this summer.

    The airline had estimated annual adjusted earnings per share of $6.50, or higher than $6 to $7, excluding the impact of global technology shutdowns in July.

    Delta shares fell nearly 2 percent in early trading.

  • Stocks steady amid cooler inflation data, higher-than-expected jobless claims

    Stocks were little changed on Thursday as investors digested a new set of data that could provide clues about how much interest rate cuts the Federal Reserve will decide to implement at its policy meeting this month.

    The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) were flat, led by strong gains in technology. The Dow Jones Industrial Average (^DJI) was also little changed.

    In terms of inflation statistics, the producer price index increased by 0.2 percent in August compared to the previous month, which was slightly higher than what economists expected. Meanwhile, the PPI reading was revised downward in July. On a year-over-year basis, wholesale prices rose 1.7 percent, in line with expectations.

    Initial weekly jobless claims rose by 2,000 to 230,000, more than economists had expected.

    Investors are paying close attention to the data as the Federal Reserve prepares for next week’s meeting. Markets were widely expecting a rate cut. What is not clear is how big the cut will be.

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