The day after a volatile Federal Reserve meeting, Wall Street grappled with the stark reality of Fed Chair Jerome Powell's cautious tone on cutting interest rates in 2024. The message left investors weighing the impact of higher-for-longer interest rates amid a still-resilient economy.
Despite the hawkish undertones, stocks managed to stabilize, with major indices posting modest gains as dip-buyers emerged.
The S&P 500 rose 0.5%, recovering from a steep 3% selloff on Wednesday—its worst one-day drop since September 2022. The Dow Jones Industrial Average gained 0.4%, attempting to break a staggering 10-day losing streak, its longest since 1974, while the tech-heavy Nasdaq 100 edged 0.3% higher.
While equities regained some ground, market conviction remains tepid as investors brace for Friday's release of the November inflation report, a critical data point for the Federal Reserve's future policy decisions. The report could either reaffirm the Fed's hawkish stance or inject hope for an lower-than-expected data.
Thursday's economic data continued to underscore the resilience of the U.S. economy. Third-quarter GDP growth was upwardly revised from 2.8% to 3.1%, amid strong consumer spending. Weekly jobless claims fell to 220,000 last week, below forecasts of 230,000, signaling a still-tight labor market.
The bond market extended its selloff, with longer-dated Treasuries taking the biggest hit. Fixed-income investors remain under pressure, exacerbated by recent comments from Donald Trump, who floated the idea of eliminating the U.S. debt ceiling entirely—a development that could upend Treasury market dynamics.
In currency markets, the U.S. Dollar Index (DXY) rose 0.2%, hitting its highest level since November 2022, supported by robust economic data.
Bitcoin (CRYPTO: BTC) remained flat at $100,000, following Wednesday's 5.6% plunge.
Thursday's Performance In Major US Indices
| Major Indices | Price | 1-day %chg |
| S&P 500 | 5,903.81 | 0.5% |
| Dow Jones | 42,511.46 | 0.4% |
| Nasdaq 100 | 21,278.46 | 0.3% |
| Russell 2000 | 2,228.69 | -0.1% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.5% to $589.79.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.5% to $426.40.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) edged 0.3% up to $517.89.
- The iShares Russell 2000 ETF (NYSE:IWM) stalled at $220.70.
- The Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, up by 1%; the Materials Select Sector SPDR Fund (NYSE:XLB) lagged, down 0.6%.
Thursday's Stock Movers
- Micron Technology Inc. (NASDAQ:MU) plummeted over 16% after a weaker-than-expected guidance for fiscal 2025, eyeing the worst 1-day drop since March 2020.
- Accenture plc (NYSE:ACN) rallied over 6% in reaction to stronger-than-expected quarterly earnings.
- Other stocks reacting to earnings included Darden Restaurants Inc. (NYSE:DRI) up 15%, Cintas Corp. (NASDAQ:CTAS) down 10%, Paychex Inc. (NASDAQ:PAYX), up 2.5%, ConAgra Brands Inc. (NYSE:CAG), down 2%, FactSet Research Systems Inc. (NYSE:FDS) up 3.3%, CarMax Inc. (NYSE:KMX), up 4.3%, and Lamb Weston Holdings Inc. (NYSE:LW), down 23%.
- Major companies slated to report their earnings after the close include FedEx Corp. (NYSE:FDX) and Nike Inc. (NYSE:NKE).
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