WASHINGTON (dpa-AFX) - Stocks have moved sharply higher over the course of the trading day on Thursday, adding to gains posted in the previous session. The major averages have all shown strong moves to the upside, with the S&P 500 climbing further off the one-month low set on Tuesday.
Currently, the major averages are just off their highs of the session. The Dow is up 669.42 points or 1.3 percent at 53,731.37, the Nasdaq is up 363.25 points or 1.4 percent at 26,581.08 and the S&P 500 is up 80.43 points or 1.1 percent at 7,747.03.
The rally on Wall Street may partly reflect easing concerns about the outlook for interest rates, as CME Group's FedWatch Tool shows a notable decrease in the likelihood of a rate hike later this month.
CME Group's FedWatch Tool currently indicates there is still a 50.3 percent chance the Fed will raise rates by a quarter point, but that is down from 63.2 percent on Wednesday.
The decrease comes after Federal Reserve Governor Christopher Waller indicted in an interview with Reuters that he is leaning towards keeping rates unchanged at the upcoming meeting.
Waller said he would be 'inclined to support' leaving rates unchanged if the data due over the next two weeks continues to show 'some signs of disinflation.'
The Fed Governor's remarks have also contributed to a pullback by treasury yields, which is also benefitting stocks.
The yield on the benchmark ten-year note is falling by nearly 5 basis points after ending yesterday's trading unchanged at its highest closing level in well over a year.
Traders are also looking ahead to Friday's closely watched monthly employment report for August, which could have a significant impact on the outlook for interest rates.
Economists currently expect employment to climb by 55,000 jobs in August after dipping by 23,000 jobs in July, while the unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.
'Weaker labor-market figures could strengthen the argument for patience, while resilience in employment alongside sticky inflation would make the hawkish case increasingly difficult to dismiss,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'Investors have been remarkably resilient so far, but that resilience is likely to be tested if oil, yields and expectations for Fed tightening begin moving higher simultaneously.'
Sector News
Gold stocks are once again moving sharply higher along with the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 3.6 percent.
Substantial strength is also visible among software stocks, as reflected by the 3.4 percent surge by the Dow Jones U.S. Software Index.
Snowflake (SNOW) has helped lead the sector higher, spiking by 19.7 percent after reporting better than expected fiscal second quarter results and providing upbeat guidance.
Brokerage stocks are also seeing significant strength on the day, with the NYSE Arca Broker/Dealer Index jumping by 3.2 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's Nikkei 225 Index dipped by 0.2 percent, while China's Shanghai Composite Index closed marginally higher and Australia's S&P/ASX 200 Index rose by 0.5 percent.
The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.1 percent, the German DAX Index is up by 0.5 percent and the U.K.'s FTSE 100 Index is up by 0.6 percent.
In the bond market, treasuries have moved to the upside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.8 basis points at 4.748 percent.
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