The stock market snapped a four-day losing streak on Thursday as stocks ended higher after a choppy trading session. Investors were weighing the path for Federal Reserve rate hikes, as expectations grow that the central bank will keep interest rates elevated for an extended period in order to bring down inflation in the face of sticky price data and a robust labor market.
The Dow Jones Industrial Average (DJIA) ended the day near 33,156, up around 111 points, or 0.3%, according to preliminary figures. The S&P 500 (SPX) closed near 4,012, up around 21 points, or 0.5%. The Nasdaq Composite (COMP) finished near 11,590, up around 83 points, or 0.7%.
The stock market has been particularly volatile in recent weeks, as investors grapple with the implications of rising inflation and the potential for the Federal Reserve to raise interest rates sooner than expected. The Fed has indicated that it will keep interest rates near zero until at least 2023, but some investors fear that rising inflation could force the central bank to raise rates sooner.
Investors are also looking ahead to the release of the April jobs report on Friday, which is expected to show that the economy added more than 1 million jobs last month. This would be a welcome sign of economic recovery, but could also add to investor anxiety about rising inflation and the potential for the Fed to raise interest rates sooner than expected.
In addition to the jobs report, investors are also keeping an eye on the progress of the Biden administration’s infrastructure plan. The White House has proposed a $2.3 trillion plan to rebuild the nation’s roads, bridges, and other infrastructure, and the plan is expected to be approved in some form by Congress.
Overall, Thursday’s trading session was a positive one for stocks, as investors took a breather from the recent volatility and focused on the potential for economic growth. The S&P 500 snapped its four-day losing streak, while the Dow and Nasdaq posted modest gains.
Looking ahead, investors will be watching the April jobs report on Friday, as well as the progress of the Biden administration’s infrastructure plan. If the jobs report comes in better than expected, it could boost investor sentiment and lead to further gains in the stock market. On the other hand, if the jobs report disappoints, it could add to investor anxiety about rising inflation and the potential for the Fed to raise interest rates sooner than expected.
In the meantime, investors will likely remain focused on the Fed’s stance on interest rates, as well as the progress of the Biden administration’s infrastructure plan. With the stock market having snapped its four-day losing streak on Thursday, investors will be hoping for a positive close to the week.
