Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2023 in New York City.Spencer Platt/Getty Images
The Dow jumped over 500 points while the S&P 500 neared its biggest gain since May.
Treasury yields fell after weeks of high levels, with the 10-year rate falling over 12 basis points.
Investors bet that the Fed is finished raising rates after Wednesday’s FOMC decision to pause.
US stocks surged on Thursday, as bond yields tumbled for a second day following the Federal Reserve’s decision to pause interest rate hikes.
The Dow Jones Industrial Average jumped over 550 points, while the S&P 500 climbed nearly 2%, nearing its biggest gain since May.
Major indexes climbed as as long-duration Treasury yields continued to come down, with the 10-year rate falling over 12 basis points. The decline is a turnabout from weeks of surging yields, as a major bond sell-off drove rates on the 10-year note past 5% for the first time since 2007.
Solid equity gains come as investors have grown more confident that the Fed is done lifting interest, after the central bank maintained rates at the 5.25%-5.50% for the second straight FOMC meeting on Wednesday.
Investors are gearing up for Friday’s jobs report, with expectations for 117,000 new positions added in October. New data on Thursday showed that labor productivity had advanced the most in three years, taking away inflationary pressure despite a growing jobs market.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Thursday:
Here’s what else happened today:
Story continues
In commodities, bonds, and crypto:
West Texas Intermediate crude oil gained 2% to $82.36 a barrel. Brent crude, the international benchmark, increased 2.4% to $86.69 a barrel.
Gold stayed edged up to $1,993 per ounce.
The 10-year Treasury fell 12.2 basis points, trading at 4.667%.
Bitcoin stayed flat at $34,862.8.
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