Wall Street closed higher on Thursday, as investors took stock of better-than-expected economic data in the United States that eased fears about a recession.
The Dow Jones Industrial Average added 0.96% to 34,907.51 points, while the Standard & Poor’s 500 global index (S&P 500) gained 0.84% to 4,505.10 points. The Nasdaq Composite Technology Index advanced 0.81% to 13,926.05 points.
Producer prices rose 0.7% in August compared to July, compared to market expectations of 0.4%. On an annual basis, it rose by 1.6%, compared to the expected 1.2%. Despite this acceleration, the market still attributes a high probability that the Fed will keep interest rates unchanged at next week’s monetary policy meeting.
“Today’s economic data confirms the path towards a soft landing [da política monetária na economia]“Because it was not so high that the Fed felt further rate hikes were necessary,” Baird analyst Ross Mayfield told Reuters.
Investors are also evaluating the decision made by the European Central Bank on this side of the Atlantic, which chose to raise key interest rates by 25 basis points, indicating that it may be near the end of its interest rate tightening cycle.
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