All three of the US market averages (^DJI, ^IXIC, ^GSPC) fell by over 1.5% each — the Nasdaq Composite and Dow Jones Industrial Average both declined by 1.63% — in response to December's jobs data reported this morning.
The Dow fell over 500 points on Friday morning after new job reports surpassed expectations, and the Federal Reserve indicated that interest rate cuts may be postponed. Additionally, inflation remains a concern and is anticipated to stay high.
The Dow and other indices rebounded on Tuesday following inflation data that came in cooler than anticipated. AI stocks that declined sharply on Monday recovered early Tuesday, with Nvidia (NVDA), Super Micro Computer (SMCI),
Wall Street will first parse the producer price index for December on Tuesday, followed by the consumer price index on Wednesday.
The better-than-expected data sent the blue-chip Dow Jones Industrial Average surging more than 700 points, or 1.7%, as investors felt renewed confidence that the Fed will cut rates multiple times this year. In recent trading, fed-fund futures showed the chances of more than one cut rising to 46%, from 35% on Tuesday, according to CME Group data.
Stocks surged on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December.
The Dow Jones Industrial Average (DJIA) avoided most of Monday’s broad-market declines as investors reaffirmed their bullish outlook on the long-run tech sector rally. The Dow gained roughly 100 points to kick off the trading week, while the other major equity indexes shed weight.
The Dow Jones Industrial Average (DJIA) climbed around 750 points at its peak on Wednesday, pushing into the bullish side to pass back through the 43,000 handle before getting hung up on the 50-day Exponential Moving Average (EMA). Equity markets are tilting firmly into the bullish camp after a key core inflation gauge ticked slightly lower.
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U.S. stocks were surging on Wednesday morning as Treasury yields fell after core inflation data came in below expectations, boosting bets that the Federal Reserve will still be able to cut interest rates this year.
"At about 100% of GDP and growing rapidly, the U.S. national debt drags down economic growth and threatens Americans with reduced opportunity and the consequences of a severe fiscal crisis," they say. Extending the Tax Cut & Jobs Act without initiating spending cuts would, they say, add to "already unsustainable deficits."
The Dow Jones rose Thursday after higher-than-expected initial unemployment claims. Nvidia stock sold off, while Tesla reversed higher.