The U.S. stock markets saw a significant increase on Thursday after the latest FOMC meeting by the Fed, which was less hawkish than expected. Fed Chairman Jerome Powell’s statement post-meeting denied a restart of the rate hike regime, which was well received by investors. Additionally, better-than-expected first quarter 2024 earnings results contributed to the positive market sentiment, leading to all three major stock indexes ending the day in positive territory.
The Dow Jones Industrial Average (DJI) rose by 0.9% or 322.37 points to close at 38,225.66, with the Nasdaq Composite jumping by 1.5% or 235.48 points to finish at 15,840.96. The S&P 500 also climbed by 0.9% to close at 5,064.20, breaking a three-day losing streak. Various sectors within the S&P 500, such as Real Estate, Technology, Consumer Discretionary, and Communication Services, saw gains ranging from 1% to 1.4%.
The fear-gauge CBOE Volatility Index (VIX) decreased by 4.6% to 14.68, with a higher than average trading volume of 11.19 billion shares. Advancers outnumbered decliners on the NYSE and Nasdaq, indicating a positive market sentiment.
Several companies reported strong earnings results, including Qualcomm Inc. (QCOM), Becton, Dickinson and Co. (BDX), and The Southern Co. (SO). These companies beat earnings estimates, leading to an increase in their stock prices. Qualcomm and Becton, Dickinson both carry a Zacks Rank #2 (Buy).
Economic data released by the Department of Labor showed that initial claims remained unchanged at 208,000, while the U.S. trade deficits for goods and services in March were slightly lower than expected. New orders for manufactured goods also exceeded the consensus estimate for March.
Overall, the positive market performance, strong earnings results, and favorable economic data contributed to a bullish sentiment on Thursday.