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US markets end higher amid hopes of Fed rate cut
Sep-12-2025

U.S. markets ended higher on Thursday after weak unemployment data supported optimism about interest rate cut by Federal Reserve (Fed) in its September meeting. The Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly increased in the week ended September 6. The report said initial jobless claims climbed to 263,000, an increase of 27,000 from the previous week's revised level of 236,000. Meanwhile, street had expected jobless claims to edge down to 235,000 from the 237,000 originally reported for the previous week. With the unexpected increase, jobless claims reached their highest level since hitting 268,000 in the week ended October 23, 2021. Further, traders shrugged off a separate report released by Labor Department showing U.S. consumer prices rose slightly more than expected in the month of August. The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.2 percent in July. Meanwhile, street had expected consumer prices to rise by 0.3 percent. The report also said the annual rate of consumer price growth accelerated to 2.9 percent in August from 2.7 percent in July, in line with street's estimates.

On the sectoral front, significant strength has been seen in Computer hardware stocks, with the NYSE Arca Computer Hardware Index surging by 2.7 percent to a record closing high. Besides, considerable buying was visible among networking stocks, as reflected by the 2.7 percent jump by the NYSE Arca Networking Index. 

Dow Jones Industrial Average surged 617.08 points or 1.36 percent to 46,108.00, S&P 500 jumped 55.43 points or 0.85 percent to 6,587.47 and Nasdaq advanced 157.01 points or 0.72 percent to 22,043.07.

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