The markets are experiencing a rebound after a period of high volatility, thanks to the decrease in Treasury yields and the daily decline in the value of the dollar.
Today’s released data confirms that the U.S. economy grew at an annualized rate of 2.1% in Q2, and initial jobless claims remain low, defying expectations of a larger increase.
The surge in risk appetite is leading to significant gains in tech stocks and Bitcoin, with the cryptocurrency seeing a 2.9% increase during midday trading in New York, marking its strongest session in September.
Bitcoin’s daily returns in September are highlighted in the chart of the day.
On Thursday, major indices all saw gains, with the S&P 500 rising 0.6%, the Dow gaining 0.5%, the Russell 2000 soaring 1%, and the Nasdaq 100 outperforming with a 1.1% increase.
During Thursday’s trading, major US equity ETFs also saw gains, with the SPDR S&P 500 ETF Trust rising 0.7%, the SPDR Dow Jones Industrial Average ETF rising 0.46%, and the Invesco QQQ Trust soaring 1.1%.
Within the S&P 500’s sector ETFs, the Communication Services Select Sector SPDR Fund was the top performer, up 1.3%. The Materials Select Sector SPDR Fund and the Consumer Discretionary Select Sector SPDR Fund also saw substantial gains, both up 1.1%. On the other hand, the Utilities Select Sector SPDR Fund was the laggard, down 1.8%.
The latest economic data shows that the US economy saw a 2.1% annualized growth rate in Q2, which was in line with the second estimate but slightly lower than the revised growth of 2.2% in Q1.
Chicago Fed President Austan Goolsbee delivered dovish remarks, suggesting that inflation may reach the target soon, without the need for further policy tightening and with only a modest slowdown in economic growth. Fed Governor Lisa Cook and Fed Chair Powell will also be speaking.
The Labor Department reported 204,000 new jobless claims for the week ending September 23, which was a slight increase from the previous week but lower than economists’ expectations.
Some notable stocks in focus include Jabil Inc., which rose over 15% after reporting better-than-expected earnings, and Accenture plc, which fell 5% due to a revenue miss. Peloton Interactive, Inc. jumped over 6% after signing a deal with Lululemon Athletica. However, other companies such as CarMax Inc., Workday, Inc., Micron Technology, Inc., GameStop Corp., and Marathon Digital Holdings Inc. saw mixed performance after their earnings reports.
In the commodities market, crude oil fell 1.2%, while Treasury yields remained stable. The dollar declined, and European equity indices closed higher. Gold edged down, while silver held steady.