Wall Street Soars Amid Fed Rate Cut Speculation and Tech Gains

Wall Street's main indexes reached record-high closes due to gains in Tesla and Micron Technology. U.S. inflation data raised expectations of a Federal Reserve rate cut. Nasdaq and S&P 500 hit new highs, while the Dow Jones Industrial Average also closed at a record high amid active trading.

Wall Street's key indexes marked record-high closes on Thursday, driven by Tesla and Micron Technology gains, alongside expectations of a Federal Reserve rate cut following U.S. inflation data. Consumer prices surged more than anticipated in August, with the largest annual inflation jump in seven months. Initial jobless claims also climbed, reaching a near four-year peak.

Atsi Sheth, Chief Credit Officer at Moody's Ratings, noted an unusual economic period with decelerating job growth and persistent inflation, predicting a Federal Reserve interest rate reduction of 25 basis points next week. Futures trading shows strong expectations of this cut, with a slight chance of a deeper 50 basis point reduction.

Trading volumes were robust, with significant gains in market sectors and entities like Tesla, Micron Technology, and Warner Bros Discovery. Overall, the S&P 500, Nasdaq, and Dow Jones Industrial Average all achieved record heights, driven by positive corporate news and shifts in the economic landscape.

(With inputs from agencies.)