NEW YORK, Sept. 11 (Xinhua) — U.S. stocks advanced on Thursday after consumer inflation data met expectations, reinforcing investor confidence that the Federal Reserve will restart rate cuts at its meeting next week.
The Dow Jones Industrial Average climbed 617.08 points, or 1.36 percent, to close at 46,108. The S&P 500 gained 55.43 points, or 0.85 percent, to 6,587.47, while the Nasdaq Composite Index rose 157.01 points, or 0.72 percent, to 22,043.08.
Ten of the 11 primary S&P 500 sectors ended higher, led by materials and health care, which rose 2.14 percent and 1.73 percent, respectively. Energy was the lone decliner, slipping 0.04 percent.
The Bureau of Labor Statistics showed that the U.S. consumer price index rose 0.4 percent in August on a seasonally adjusted basis, in line with most estimates.
The report lifted the annual inflation rate to 2.9 percent, up 0.2 percentage points from the previous month and the highest since January.
Core CPI, which excludes food and energy and is viewed by Federal Reserve officials as a better gauge of long-term inflation, climbed 0.3 percent in August. On a 12-month basis, the core measure held at 3.1 percent, in line with forecasts. The Fed’s official inflation target is 2 percent.
Adding to the picture of a cooling labor market, weekly jobless claims jumped to 263,000, the highest in four years and well above expectations of 235,000. The sharp increase from a revised 236,000 in the prior week followed benchmark revisions that showed the economy added 911,000 fewer jobs in the year through March than previously reported.
Large-cap technology stocks turned in a mixed performance. Tesla jumped 6 percent, while Apple added more than 1 percent. Microsoft and Alphabet edged higher, but Nvidia, Amazon and Meta Platforms ended slightly lower. Broadcom lost over 2 percent.
In corporate news, Warner Bros. Discovery shares soared 28.95 percent after reports surfaced that the newly created Paramount Skydance was preparing a takeover offer. Oracle slid 6.23 percent, giving back some of the gains from its strong rally the day before on the heels of robust earnings.
