On Thursday, US equity markets experienced a significant uptick, predominantly driven by the industrial and energy sectors. As investors evaluated data pertaining to durable goods orders alongside growth metrics, the market showed resilience ahead of the Federal Reserve's primary inflation gauge. The Nasdaq composite gained 0.6%, finishing the day at 17,438.1.
Similarly, the S&P 500 index increased by 0.7%, closing at 5,465.6, while the Dow Jones Industrial Average rose by 1.1%, ultimately settling at 40,293.3. Notably, during earlier trading, both the S&P 500 and Nasdaq encountered downturns. Throughout the trading session, the utilities and real estate sectors were the only ones that recorded losses.
Significantly, the Russell 2000 Index, which reflects the small-cap segment, surged by 2.5% to reach 2,250.50, marking its highest level since March. This rally came on the back of strong performance indicators from July, suggesting a possible shift in investor interest away from technology and communication services.
These sectors have been major contributors to the S&P 500 and Nasdaq's remarkable highs observed this year. In the realm of economic developments, new orders for durable goods in the United States saw a notable decrease of 6.6% in June, following a marginal gain of 0.1% in May. This outcome was contrary to market expectations, which anticipated a 0.3% rise, as gathered from a survey conducted by Bloomberg.
When excluding the significant 20.5% drop in transportation orders, the new orders would have actually shown a modest increase of 0.5% in June, countering a slight decrease of 0.1% observed in May. Market forecasts had anticipated a 0.2% gain for this period. The macroeconomic landscape also revealed that the Gross Domestic Product (GDP) increased by 2.8% in the second quarter, a marked improvement compared to the 1.4% growth recorded in the first quarter and the 2% increase that was expected based on a Bloomberg survey. In labor market news, initial jobless claims in the US dropped to 235,000 for the week ending July 20, down from an upwardly revised estimate of 245,000 from the previous week.
This figure was slightly below the anticipated 238,000 as per a Bloomberg survey. Insights from the CME Group's FedWatch Tool indicated a shift in expectations regarding the Federal Open Market Committee's interest rate decisions. The likelihood of a 25 basis points cut in September has decreased to 84% as of Thursday afternoon, a decline from 90% recorded a day earlier and 94% from the prior week. Additionally, key inflation data is imminent, with the Personal Consumption Expenditures Index for June, which serves as the central bank's favored inflation measure, scheduled for release on Friday. In the commodities market, gold prices took a hit, slumping 2.2% to reach $2,361.51 per ounce, while silver prices fell 4.5%, settling at $28.01.
Treasury yields exhibited mixed outcomes; the yield on the 10-year Treasury note declined by 3.5 basis points to 4.25%, whereas the two-year yield rose by 1.5 basis points to 4.43%. Turning to corporate developments, shares of Molina Healthcare ($MOH) witnessed a remarkable surge, climbing 15% intraday to emerge as the standout performer on the S&P 500.
This boost followed the company's announcement of stronger-than-expected Q2 adjusted earnings and sales figures, along with a reaffirmation of its income outlook for the full year of 2024. Conversely, Edwards Lifesciences ($EW) experienced a significant decrease, with its shares dropping over 28% intraday.
This decline followed the company's report late on Wednesday of a growth in Q2 sales that fell short of market forecasts. In contrast, IBM ($IBM) shares saw an increase of 6% intraday, making it the top gainer on the Dow. This uptick followed the company's Q2 earnings, which unexpectedly showcased year-over-year growth, spurred primarily by momentum in its software division that pushed revenue past Wall Street's predictions. Meanwhile, West Texas Intermediate crude oil prices also increased by 0.85%, reaching $78.32 per barrel.
As the markets continue to navigate these multifaceted developments, investors remain on alert for further economic indicators and corporate performance updates..