### Market Anticipates Upward Trend in Early Thursday Trading
Stocks are poised to extend their upward movement at the start of trading on Thursday, building on the previous session's rally. Futures on major indices indicate a slightly higher opening, with S&P 500 futures rising by 0.3 percent.
#### Key Economic Indicators
The positive turn in futures followed a pivotal Labor Department report revealing that U.S. consumer prices unexpectedly declined slightly in June.
- **Consumer Price Index (CPI):** The CPI dipped by 0.1 percent in June, compared to a flat reading in May. Analysts had predicted a slight increase of 0.1 percent.
- **Core CPI:** Excluding food and energy prices, core CPI rose by 0.1 percent in June, slightly below May’s 0.2 percent increase and expectations of another 0.2 percent rise.
- **Annual CPI Growth:** Year-on-year, the CPI growth rate decelerated to 3.0 percent in June from 3.3 percent in May, falling short of the forecasted 3.1 percent.
- **Annual Core CPI Growth:** Similarly, the core CPI's annual growth slowed to 3.3 percent from 3.4 percent, defying projections of steady growth.
These figures bolster the optimistic view that the Federal Reserve may consider lowering interest rates as soon as their September meeting, encouraged by the tempered inflationary pressures.
#### Labor Market Insights
A concurrent Labor Department report disclosed a significant drop in initial claims for unemployment benefits for the week ending July 6.
- **Initial Jobless Claims:** Claims fell to 222,000, down by 17,000 from the previous week’s revised count of 239,000. Economists had projected a smaller decline to 236,000 from the initially reported 238,000.
#### Market Performance Recap
Following a subdued Tuesday session, stocks experienced substantial gains on Wednesday, culminating in the S&P 500 closing above 5,600 for the first time ever.
- **Indices Performance:** The Nasdaq soared by 218.16 points (1.2 percent) to 18,647.45. The Dow Jones Industrial Average increased by 429.39 points (1.1 percent) to 39,721.36, and the S&P 500 advanced by 56.93 points (1.0 percent) to 5,633.91.
#### International and Commodity Markets
International markets followed suit with positive movements. In the Asia-Pacific region:
- **Japan:** The Nikkei 225 gained 0.9 percent.
- **China:** The Shanghai Composite Index increased by 1.1 percent.
- **Hong Kong:** The Hang Seng Index surged 2.1 percent.
European markets also saw gains:
- **U.K.:** The FTSE 100 rose by 0.3 percent.
- **France and Germany:** Both the CAC 40 and the DAX Index climbed by 0.6 percent.
In commodities:
- **Crude Oil:** Futures rose by $0.44 to $82.54 per barrel after a previous gain of $0.69.
- **Gold:** Futures surged by $28.80 to $2,408.50 per ounce after rising $11.80 in the prior session.
#### Currency Market
In currency trading:
- **USD/JPY:** The U.S. dollar is trading at 159.00 yen, down from 161.69 yen noted at the close of New York trading on Wednesday.
- **EUR/USD:** The dollar is valued at $1.0892 against the euro, up from $1.0830 the previous day.
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Overall, the data suggest a continuation of positive market sentiment, influenced by tempered inflation and supportive labor market conditions, enhancing the likelihood of favorable monetary policy adjustments.
