September 15, 2023

On Thursday, the stock market experienced a rally as traders analyzed strong U.S. retail sales and Producer Price Index (PPI) data. The positive figures raised expectations of an imminent Federal Reserve interest rate hike next week. The major indexes responded with gains, reflecting the market’s optimism.

The S&P 500 index rose by 0.8%, while the Dow Jones Industrial Average increased by 1% or 330 points. The Nasdaq Composite also joined the rally, gaining 0.8%. These gains were fueled by solid retail sales and PPI data, which suggested that consumers remained resilient despite the increasing inflation as suggested by the CPI data.

In August, retail sales rose by 0.6%, surpassing expectations of 0.1% growth. This indicates that consumer spending remained strong despite ongoing concerns about inflation and rising interest rates. Additionally, the PPI increased by 0.7%, indicating persistent inflationary pressures in the economy. However, core inflation showed some signs of cooling, declining to 2.2% from July’s 2.4%.

Most Active Stocks

On Thursday, the most actively traded stocks included:

Most Active By Share Volume

Most Active By Dollar Volume

Nasdaq

ARM Makes Impressive IPO Debut with 25% Surge in Stock

On Thursday, eyes were on British chipmaker ARM as it made its IPO debut. The IPO was priced at $51 per share and opened at $56.10, a 10% increase. In the first 30 minutes of trading, the stock continued to climb, reaching over $61. By the end of the day, the ARM stock closed with a nearly 25% surge, valuing the company at over $60 million.

Meta Stock

This table provides an overview of Meta Stock’s performance on Thursday. The opening price was $311.860, and throughout the trading session, it reached a high of $312.020 and a low of $311.640. By the market close, the meta stock price slightly recovered to a closing price of $311.710. The overall change for Meta Stocks for the day was a decrease of -0.150 (-0.05%), indicating a relatively stable performance despite some volatility during the session.

European and Asian Stocks Rally

On Friday, European and Asian stocks continued the rally amid hopes that central banks would halt the cycle of interest rate increases. In EU markets,The European Stoxx 600 index, which had gained 1.5% the previous day, rose by another 0.9% on Friday morning. The London FTSE 100 also saw an increase of 0.9%, supported by mining stocks.

The European Central Bank (ECB) recently raised interest rates to 4% and indicated that it intends to maintain this level until inflation is under control. However, As traders shop stocks they are cautiously optimistic that a slowdown in the euro zone economy might lead to future rate cuts.

In Asia Markets, in an effort to stimulate economic growth, China reduced its banks’ reserve ratio requirement, aiming to increase credit availability for households and businesses. This move has further contributed to the positive sentiment in global markets.

Forex and Energy Markets

In the forex market, the euro rose slightly to $1.063, attempting to recover from its lowest level since March. Meanwhile, the U.S. dollar index edged downward by 0.12% to 105.23, which is still near its highest level since March.

In the energy markets, Brent crude futures climbed by 0.6% to close at $90.68, reflecting ongoing concerns about global supply constraints and geopolitical tensions.

Overall, Thursday’s stock rally was driven by a combination of strong retail sales, PPI data, and optimism surrounding central bank policies. Traders remain watchful for any new developments that may impact market sentiment and future trends.

Disclaimer

The information provided here is based on publicly available sources and does not constitute financial advice. Please consult with a professional financial advisor before making any investment decisions.