U.S. benchmark equity indexes demonstrated positive momentum during intraday trading as investors evaluated the most recent economic indicators, including the official producer prices report released for August. The Nasdaq Composite Index surged by 1% to reach 17,562.5 by Thursday afternoon, with the S&P 500 advancing 0.7% to 5,593.1.
The Dow Jones Industrial Average increased by 0.5% to settle at 41,055.1. Each sector recorded gains, notably led by communication services and technology, underscoring the optimistic market sentiment. In terms of economic news, the Bureau of Labor Statistics (BLS) indicated that producer prices in the U.S.
escalated beyond expectations last month, presenting a rebound in wholesale services expenses. This uptick is crucial as it provides insights into potential inflationary pressures that could influence monetary policy. Moreover, data from BLS revealed that U.S. consumer inflation adhered to expected rises for August on a sequential basis, while the annual increase recorded its smallest uptick since February 2021.
This information further substantiates the necessity for a "tempered path of policy easing" by the Federal Reserve, according to Stifel's commentary directed at their clients. Market forecasts indicate a 73% likelihood that the Federal Open Market Committee of the central bank will reduce its benchmark lending rate by 25 basis points in the upcoming session, juxtaposed with a smaller probability suggesting a more aggressive reduction of 50 basis points, as derived from the CME FedWatch tool. In terms of labor market developments, weekly applications for unemployment insurance in the United States showed an unexpected increase, as reported in new government data released on Thursday. Concerning yield rates, the U.S.
10-year yield marked an increase of 3.8 basis points to 3.69% intraday, alongside a rise in the two-year rate by 1.6 basis points to 3.66%. In corporate news, Warner Bros. Discovery ($WBD) has entered into a multiyear distribution agreement with Charter Communications ($CHTR), aiming to integrate traditional video alongside streaming services.
As a result, Warner Bros. shares soared by 8.5%, making it the best performer among both the S&P 500 and the Nasdaq, while Charter's stock appreciated by 3.3%. Furthermore, biotechnology giant Moderna ($MRNA) announced a strategic move to reduce its research and development expenditures while prioritizing the launch of its new product pipeline.
Unfortunately, this decision led to a significant drop in the company's stock, plummeting by 12%, marking the steepest decline across the S&P 500 and Nasdaq indices. In another development, Mastercard ($MA) disclosed its acquisition of cybersecurity and intelligence firm Recorded Future from Insight Partners for a substantial $2.65 billion.
This acquisition is aimed at enhancing its security measures within the payment ecosystem, causing Mastercard's shares to gain 0.4%. Additionally, Adobe ($ADBE) and RH ($RH) are among the companies that are set to unveil their latest quarterly financial results subsequent to Thursday's closing bell. As for commodities, West Texas Intermediate crude oil prices increased by 2.8%, reaching $69.22 a barrel during intraday trading.
Moreover, the prices of gold and silver were on the rise, with gold advancing by 1.5% to $2,580.50 per troy ounce, while silver showed a commendable increase of 4% to reach $30.07 per ounce..