Stocks surged on Thursday, reaching new record highs as the Dow rose by 617.08 points, the S&P 500 by 55.43 points, and the Nasdaq by 157.01 points. The positive momentum was driven by Labor Department reports showing consumer price inflation slightly exceeding expectations in August. Core consumer prices also rose, matching economist forecasts. However, first-time jobless claims unexpectedly increased, reaching the highest level since October 2021. The reports added to optimism about interest rates, with a high chance of a quarter-point rate cut by the Federal Reserve next week. Various sectors, including computer hardware, networking, and biotechnology, saw significant gains. Overseas markets were mixed, with Asian markets showing a mixed performance and European markets moving higher. Treasury yields dipped, and trading on Friday may be influenced by a consumer sentiment report.

Read more at Nasdaq: U.S. Stocks Rally To Record Highs Amid Positive Reaction To Data