Dow Jones surges over 1%, closes above 46,000 level for first time

US stocks closed higher on Thursday, supported by hopes that the Federal Reserve will resume interest rate cuts next week, amid signs of contained inflation and concerns about labor market weakness.

The Dow Jones Industrial Average jumped 1.36%, or 617 points, to close at 46,108 points, marking a new record high.

The S&P 500 rose 0.85% (55 points) to 6,587 points, while the Nasdaq Composite gained 0.72% (157 points) to 22,043 points, both ending at fresh record levels.

In Europe, the Stoxx Europe 600 index added 0.55% to 555 points, with auto stocks rising 1.27%.

The FTSE 100 in London climbed 0.78% to 9,297 points, the DAX in Germany increased 0.30% to 23,703 points, while France’s CAC 40 advanced 0.80% to 7,823 points.

In Japan, the Nikkei 225 index rose 1.22% to 44,372 points, after touching a record high of 44,396 points, while the broader Topix index gained 0.22% to 3,147 points.

In the oil market, Brent crude futures for November delivery fell 1.66% (-$1.12) to $66.37 per barrel, while WTI crude futures for October delivery declined 2% (-$1.30) to $62.37 per barrel.

Gold futures for December delivery slipped 0.23% (-$8.4) to $3,673.60 per ounce at settlement.

Latest data showed that US annual inflation accelerated to 2.9% in August, up from 2.7% in July, in line with analysts’ expectations. However, the Consumer Price Index (CPI) increased 0.40% month-on-month, compared with forecasts of a 0.30% rise.

Meanwhile, jobless claims in the US rose by 27,000 to 263,000 last week, the highest level since October 2021.