On Thursday, stock markets continued their upward momentum, building on the impressive gains from previous sessions. The major indices have all achieved new record intraday highs, with the Nasdaq, in particular, demonstrating significant strength.
Currently, the Nasdaq Composite has risen by 223.40 points, or 1.2%, to 19,206.86, while the S&P 500 has advanced 32.23 points, or 0.5%, to 5,961.27. In contrast, the Dow Jones Industrial Average, after reaching a record high earlier, has seen more volatility and is presently down by 20.43 points, or 0.1%, at 43,709.50.
The continued positive trend on Wall Street reflects sustained optimism surrounding former President Donald Trump's return to the White House. Many investors anticipate that Trump's policies will benefit businesses and stimulate the U.S. economy, although there are concerns about the potential inflationary impact of proposed tariff increases.
Another boost to stocks came from the decisive nature of Trump's victory over Vice President Kamala Harris, which helped avoid the turmoil that could have resulted from prolonged vote counting or legal challenges.
Traders are also focusing on the Federal Reserve's upcoming monetary policy announcement. The market anticipates a 25 basis point rate cut, and investors are keenly awaiting the accompanying statement for any hints regarding future rate reductions. According to CME Group's FedWatch Tool, there's a 66.4% probability of another 25 basis point rate cut in December, compared to a 31.8% chance that rates will remain unchanged.
On the economic front, the U.S. Labor Department reported a modest rise in initial claims for unemployment insurance for the week ending November 2nd. The claims inched up to 221,000, an increase of 3,000 from the previous week's revised figure of 218,000. This is following a period where jobless claims reached their lowest since May 18th, when they hit 216,000.
Additionally, the Labor Department released another report indicating that labor productivity increased slightly less than expected in Q3, while unit labor costs rose more significantly than anticipated.
**Sector Performance**
Once again, semiconductor stocks are experiencing gains, pushing the Philadelphia Semiconductor Index up by 1.8%. Retail stocks are similarly strong, with the Dow Jones U.S. Retail Index climbing 1.6% to establish a new intraday peak. The tech-heavy Nasdaq also benefits from robust performances in software and computer hardware sectors.
Conversely, oil service stocks have experienced a sharp decline following a substantial rise in the previous session, pulling the Philadelphia Oil Service Index down by 2.3%. Banking stocks are reversing some of their prior gains, as evidenced by a 2.0% drop in the KBW Bank Index.
**Other Markets**
In Asia-Pacific trading, markets displayed a mixed performance. Japan's Nikkei 225 Index dipped by 0.3%, while Hong Kong's Hang Seng Index and China's Shanghai Composite Index rose by 2.0% and 2.6%, respectively.
European markets, on the other hand, largely moved upwards. The German DAX Index surged by 2.0%, the French CAC 40 Index increased by 1.0%, and the U.K.'s FTSE 100 Index hovered just above break-even.
In the bond market, U.S. Treasuries are recovering from a prior session sell-off, resulting in a decline of 7.9 basis points in the yield on the benchmark ten-year note, now standing at 4.347%.
