Updated 2 min read
In This Article:
US stocks climbed on Thursday amid growing bets on interest rate cuts as the S&P 500 moved closer to clinching its first record close since February.
The S&P 500 (^GSPC) rose around 0.7%. The Nasdaq Composite (^IXIC) moved up about 0.8%. The Dow Jones Industrial Average (^DJI) also added nearly 0.8%, or about 330 points. Nvidia stock (NVDA) was up 1%, on track to build on its record high on Wednesday.
President Trump appeared to get closer to naming his replacement for Federal Reserve Chair Jerome Powell. Trump's frustration with Powell's "wait and see" approach to interest rates has led him to consider announcing his pick to succeed the Fed chair in September or October, The Wall Street Journal reported.
Markets view that as a signal that early US rate cuts have become more likely, given Trump has criticized the Fed chair for not lowering borrowing costs. Rate cut bets have also intensified as the labor market shows continued signs of weakness.
The dollar (DX=F) retreated to its lowest level since April 2022, already under pressure from concerns about tariff impacts and a looming US default. Treasury yields also declined, with the benchmark 10-year (^TNX) trading around 4.27%.
Investors got a snapshot of the health of the economy in a clutch of data Thursday. The highlights: The US economy shrank 0.5% in the first quarter, according to the government's final estimate, worse than previously thought.
Jobless claims rose, with continuing claims rising to their highest level since late 2021. And mortgage rates fell below 6.8% for the first time since May, though one economist told Yahoo Finance that significant improvements in affordability are unlikely this year.
The main event for Wall Street to end the week lands Friday with the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report. Investors will be watching closely for any signs that Trump's tariffs pushed prices higher.
LIVE 15 updates
Mortgage rates fall below 6.8% for first time since May
Mortgage rates dropped for the fourth consecutive week as geopolitical tensions eased and Treasury yields fell, Yahoo Finance's Claire Boston reports.
Boston wrote:
Circle stock rebounds after steep 2-day drop
Circle shares rose over 12% Thursday after a two-day plummet as the USDC (USDC-USD) stablecoin issuer is expected to face rising competition.
Circle stock fell more than 15% Tuesday and nearly 11% Wednesday.
That drop came after a stunning rally last week fueled by investor optimism over stablecoin regulation and adoption. The US Senate passed the GENIUS Act last week — legislation that would establish a federal framework for digital tokens backed by assets such as the US dollar. But that regulation could also accelerate competition in the space, Ferré reported.
Circle's gain on Thursday helped recover losses earlier in the week. Shares traded at nearly $224 by midday, up 620% for the month but below the stock's record close above $263 on Monday.
Bloomberg Intelligence analyst Diksha Gera wrote in a note Thursday that Circle's surge since its IPO "signals strong investor enthusiasm and growing institutional appetite for stablecoins."
Gera added that blockchain-based tokens tied to currencies "are moving from the fringe into the financial mainstream."
Council of Economic Advisers chair: Tariffs may be here to stay
President Trump's top economist told Yahoo Finance that he doesn't expect the aggregate tariff rate to fall materially below 10% and that the White House may extend the negotiating period for some countries engaging in trade talks.
"My expectation would be that for countries that are negotiating in good faith and making progress, that rolling back the deadline makes sense," Council of Economic Advisers chairman Stephen Miran said on Yahoo Finance's Opening Bid. "I mean, you don't blow up a deal that's that's in process and making really good faith, sincere, authentic progress by dropping a tariff bomb in it."
In recent weeks, President Trump and administration officials have signaled some leeway in the July 9 tariff deadline as investors remain on watch for the return of "Liberation Day" tariffs that roiled markets.
All three major averages were higher in afternoon trading, with the S&P 500 (^GSPC), Dow Jones (^DJI), and Nasdaq (^IXIC) up around 0.7%.
S&P 500 eyes fresh record
The S&P 500 (^GSPC) was trading just a stone's throw away on Thursday from its record close from February, as well as its intraday all-time high.
The broad-based index rose 0.6% to hover near 6,130 by around 11:40 a.m. ET. The S&P 500 last touched an intraday record of 6,147.43 in February, along with a record close of 6,144.15.
Industrials (XLI), Communications Services (XLY) and Tech (XLK) have all led the overall market higher this year.
AI chip giant Nvidia (NVDA) stock continued to tick higher Thursday, rising roughly 1after closing at a record in the prior session.
Nvidia stock keeps rising after fresh record as analyst sees AI 'golden wave'
Nvidia (NVDA) stock continued to tick higher Thursday, rising more than 1% in early trading after notching a record high above $154 the prior day.
The gains come amid bullish predictions for the AI chip market on Wall Street.
Loop Capital analyst Ananda Baruah on Wednesday raised his price target on Nvidia shares to $250, the highest of Wall Street analysts tracked by Yahoo Finance, implying that the AI chipmaker's market capitalization could soar to $6 trillion. Baruah expects the market for AI chips to grow to $2 trillion in 2028.
Baruah said that "we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand."
Bank of America analyst Vivek Arya wrote in his own note to investors Wednesday that he forecasts demand for AI chips reaching a more modest but still impressive $650 billion by 2030, up from $201 billion in 2025. Arya said Nvidia is set to be a "key beneficiary" as it's "still far ahead" of new entrants in the sector.
Amazon's 3 secret advantages that could power its stock higher
Yahoo Finance's Francisco Velasquez reports:
Read more here.
Stocks open higher
US stocks climbed on Thursday amid growing bets on interest rate cuts as President Trump appeared to get closer to naming his replacement for Federal Reserve Chair Jerome Powell.
The Nasdaq Composite climbed about 0.3%. The S&P 500 (^GSPC) added about 0.4%, with its first record close since February in sight. Meanwhile, the Dow Jones Industrial Average (^DJI) also rose 0.4%, or around 200 points.
Nvidia (NVDA) stock was up marginally and on track to build on its record high from Wednesday.
Walgreens earnings top estimates amid cost-cutting efforts
Walgreens Boots Alliance stock (WBA) gained less than 1% in premarket trading on Thursday after the pharmacy chain beat earnings estimates in its fiscal third quarter.
Store closures and cost-cutting efforts boosted Walgreens' profits to $0.38 per share, ahead of Bloomberg-compiled estimates of $0.31 per share. Walgreens reported revenue of $39 billion, beating estimates for $36.8 billion.
CEO Tim Wentworth noted that the company remains focused on its turnaround plan. Walgreens is being taken private by Sycamore Partners in a $10 billion deal expected to close later this year.
Continuing claims hit highest level since November 2021
Weekly claims for unemployment benefits slipped from their highest level in eight months during the first full week of June while the number of Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021.
Data from the Department of Labor released Thursday showed 1.974 million continuing claims were filed in the week ending June 14, up from 1.937 million the week prior and the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
The data release also showed 236,000 initial jobless claims were filed in the week ending June 21, below 246,000 the week prior.
The data's release comes as the US labor market continues to show signs of slowing.
Platinum jumps to highest since 2014
Platinum (PL=F) futures surged to their highest level since 2014, rising more than 5% at one point to as high as $1,411.80 per ounce. Year to date, platinum futures have climbed around 56% as supply concerns have driven the metal higher.
Prices for palladium (PA=F), which is sometimes used as an alternative to platinum, also increased more than 3% to trade $1,107.50.
Bloomberg reports:
Gold (GC=F) futures also opened higher after nearing record highs on June 13 and June 16 as investors wait for more clarity on whether the Israel-Iran ceasefire will hold.
Tech optimism is reaching 1999 levels — but with a few key differences
Nike earnings on deck: Wall Street looks for signs of turnaround progress
Nike (NKE) is set to report its fiscal fourth quarter earnings after market close today, and Wall Street is bracing for more poor results.
Yahoo Finance's Brooke DiPalma reports:
Good morning. Here's what's happening today.
Economic data: First quarter GDP; First quarter personal consumption; Initial jobless claims (week ended June 21); Pending home sales (May); Durable goods orders (May preliminary); Wholesale inventories (May preliminary)
Earnings: McCormick (MKC), Nike (NKE), Walgreens Boots Alliance (WBA)
Here are some of the biggest stories you may have missed overnight and early this morning:
Meta's quest to dominate the AI world
Trump made a final case for his big tax bill. Economists aren't buying it.
Nike earnings after the bell: Wall Street is hoping for progress
Nvidia leaps to new high in remarkable turnaround
Dollar slides as Trump reportedly eyes replacing Powell early
China tech giants are ramping up M&A with Beijing's blessing
Trending tickers: Nvidia, Micron and Coinbase
Here are some top stocks trending on Yahoo Finance in premarket trading:
Nvidia (NVDA) stock was up 1% in premarket trading on Thursday after notching a new record high of $154.31 on Wednesday.
Micron (MU) stock was up over 2% before the bell on Thursday after delivering third-quarter results and fourth-quarter forecasts that exceeded estimates. But despite the upbeat results, Wall Street was not impressed.
Coinbase (COIN) rose 1% in premarket trading after touching a 52-week high the day before. Bernstein analysts dubbed the cryptocurrency platform a "one-stop Amazon" of crypto services.
Dollar loses ground to the euro, reaches lowest in over 3 years
The dollar (DX=F) has hit a low against the euro that hasn't been reached in over three and a half years. Concerns over Trump's tariff impacts on US economic stability, combined with a loss of trust over the ability of the Fed to remain independent, have consistently applied downward pressure on the greenback.
Reuters reports:
