US stocks climbed on Thursday, headed for a rebound from their worst daily sell-off in months as nerves settled and the prospect of interest-rate cuts buoyed spirits again.
S&P 500 (^GSPC) popped about 0.8%, staging a comeback from the biggest single-day loss since October. The Dow Jones Industrial Average (^DJI) rose 0.7%, while the teach-heavy Nasdaq Composite (^IXIC) gained 1.2% after both indexes snapped nine-day win streaks.
Warnings have come that stocks are ripe for a pullback after a record-breaking rally driven by expectations the Federal Reserve will pivot to cutting rates, potentially as soon as March. The market has stubbornly stuck to that conviction despite pushback from central bank officials, keeping stock prices aloft — until the rally’s breather on Wednesday.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
But there was no clear culprit for Wednesday’s sharp slide, and a range were put forward: Worries about the US economy after bellwether FedEx’s (FDX) downbeat revenue forecast, year-end profit-taking, and zero-day options trading among them.
In individual stocks, Micron Technology (MU) shares rose more than 8% in after the memory chipmaker’s second-quarter revenue forecast topped Wall Street’s expectations. The outlook signals a 2024 revival for the memory chip sector, which has suffered a significant slump in prices.
Live1 update
Click here for in-depth analysis of the latest stock market news and events moving stock prices.
Read the latest financial and business news from Yahoo Finance
Discover more from Today Headline
Subscribe to get the latest posts to your email.