Stocks Surge as Market Rally Continues Amid Economic Data

NEW YORK, NY — Stocks closed higher Wednesday as the market extended a rally, pushing major indexes back to record-high levels. The Dow Jones Industrial Average climbed by 1%, or more than 400 points, bringing it within 0.2% of its first record close since December.

The S&P 500 rose 0.3% to achieve a new high for the second consecutive day, while the Nasdaq Composite added 0.1%, marking a record closure for the fourth time in five sessions. The Russell 2000 small-cap index surged 2%, hitting its highest level of the year as investor risk appetite increased.

The rise followed a closely watched report indicating that inflation remained steady in July, which reinforced market expectations for potential interest rate cuts. Investors await the release of additional economic data, including July’s wholesale inflation figures and weekly jobless claims set for tomorrow.

Despite the overall market gains, major technology companies mostly saw declines. Microsoft, Meta Platforms, and Broadcom each dropped more than 1%. However, Apple and Amazon saw gains of over 1%, with Amazon announcing a significant expansion.

Among notable moves, shares of fast-casual restaurant chain CAVA Group plunged 17% after disappointing earnings, while AI cloud provider CoreWeave experienced a dramatic 21% drop following weak guidance.

UnitedHealth shares rose nearly 4% after the insurer’s board approved a dividend payout, leading the Dow’s gainers. Nike and Merck each increased by 3%.

In other news, shares of Paramount Skydance surged nearly 40% despite no apparent news. The firm was recently formed by the merger of Paramount Global and Skydance Media.

Bitcoin prices were up to $122,900 in late-afternoon trading, approaching its record high of $123,200 from mid-July. The U.S. dollar index fell 0.3%, reaching a two-week low of 97.78.

The yield on the 10-year note, influential in setting borrowing costs, dropped to 4.24%. This follows a weak employment report for July, which helped lower expectations for interest rate hikes.

West Texas Intermediate crude oil prices slipped 0.7% to $62.75 per barrel, extending a two-week decline that has brought prices to their lowest since early June. Gold futures rose slightly to $3,410 an ounce.

As market conditions evolve, analysts from Morgan Stanley anticipate significant growth in nuclear energy investments, potentially reaching $2.2 trillion by 2050.

The stock market’s momentum signals a renewed confidence among investors, with hopes for continued economic recovery.