Dow Jones gains 332 points as Wall Street extends rally

NEW YORK, New York – U.S. stocks extended gains on Thursday as economic data indicated a slowing of the economy in the second quarter. As the previous quarter’s GDP contracted, investors sensed the Fed’s aggressiveness in raising interest rates may not need to be sustained for as long as previously thought.

Interest rates on corporate bonds and Treasurys fell.

“The decline in yields may suggest that markets think the Fed will have to pivot and move rates lower at some point, maybe in the next 12-month period,” Mona Mahajan, senior investment strategist at Edward Jones told Reuters Thursday.

“It does imply the pace of tightening will become more gradual going forward.”

The Standard and Poor’s 500 did best, rising 48.82 points or 1.21 percent to close Thursday at 4,072.43.

The Dow Jones industrials rallied 332.04 points or 1.04 percent to 32,529.63.

The Nasdaq Composite gained 130.17 points or 1.08 percent to 12,162.59,

The U.S. dollar retreated as yields softened. The euro shot up to 1.0187 by the New York close Thursday. The British pound was solid at 1.2167. The Japanese yen was sharply higher at 134.29. The Swiss franc was in demand at 0.9549.

The Canadian dollar rose to 1.2817. The Australian dollar was little changed at 0.6982. The New Zealand dollar strengthened to 0.6282.

On overseas equity markets, there were strong gains in Europe. The Paris-based CAC 40 swelled 1.30 percent. The Dax in Germany climbed 0.88 percent. In the U.K., sharemarkets were flat, with the FTSE 100 finishing Thursday down 0.04 percent.

In Japan, the Nikkei 225 gained 0.36 percent. China’s Shanghai Composite gained 0.26 percent. The Australian All Ordinaries added 1.11 percent.

The S&P/NZX 50 rose 1.73 percent. South Korea’s Kospi Composite advanced 0.72 percent.

Only in Hong Kong did stocks fall. The Hang Seng finished Thursday down 0.23 percent.

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