Benchmark US indices closed the session higher on Thursday, October 13, as the market participants seemed to be putting their bets on the beaten-down prices of the stocks after stronger-than-anticipated inflation data cemented bets over further aggressive stances by the Federal Reserve.
The S&P 500 rose 2.60 per cent to 3,669.91. The Dow Jones was up 2.83 per cent to 30,038.72. The NASDAQ Composite added 2.23 per cent to 10,649.15, and the small-cap Russell 2000 rose 2.41 per cent to 1,728.41.
The market witnessed a sharp decline in early trading on Thursday after consumer price index or CPI data by the Labor Department showed that the inflation advanced at a pace of 8.2 per cent last month on a YoY basis.
The core CPI which excludes volatile food and fuel prices, rose 6.6 per cent in September, following a surge of 6.3 per cent in the prior month.
The 6.6 per cent jump in the core CPI marked its highest level since August 1982. The still-elevated inflation data has raised concerns that the Federal Reserve might stick to their hawkish plans in the coming days, while many investors are betting another 0.75 basis point jump in the policy rates at Fed's next month gathering.
The financials and energy sectors were the top percentage gainers in the S&P 500 index on Thursday, while the information technology sector provided the highest boost. Ten of the 11 segments of the S&P 500 index stayed in the positive territory, with the communication services segment trading near the flatline.
Shares of Delta Air Lines, Inc. (NYSE: DAL) added over four per cent in the intraday trading on October 13, after the airline company reported its third-quarter earnings results. Meanwhile, the legacy carrier said that it expects a jump of as much as nine per cent in its Q4 revenue compared to the same period of 2019, citing strong demands for domestic and international travel.
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) also surged over four per cent in the intraday session on Thursday, after the semiconductor manufacturing firm reported an 80 per cent rise in its latest quarter profit.
In the financial sector, Berkshire Hathaway Inc. (BRK-B) rose 4.65 per cent, Visa Inc. (V) gained 3.73 per cent, and JPMorgan Chase & Co. (JPM) surged 5.52 per cent. Bank of America Corporation (BAC) and Mastercard Incorporated (MA) advanced 5.94 per cent and 3.83 per cent, respectively.
In energy stocks, Exxon Mobil Corporation (XOM) increased by 3.64 per cent, Chevron Corporation (CVX) added 4.88 per cent, and Shell plc (SHEL) soared by 3.81 per cent. ConocoPhillips (COP) and TotalEnergies SE (TTE) ticked up 5.70 per cent and 4.45 per cent, respectively.
In the technology sector, Apple Inc. (AAPL) jumped 3.54 per cent, Microsoft Corporation (MSFT) climbed 3.90 per cent, and NVIDIA Corporation (NVDA) rose 4.10 per cent. Broadcom Inc. (AVGO) and Oracle Corporation (ORCL) were up 1.77 per cent and 2.39 per cent, respectively.
Futures & Commodities
Gold futures were down 0.28 per cent to US$1,672.80 per ounce. Silver decreased by 0.53 per cent to US$18.837 per ounce, while copper rose 1.12 per cent to US$3.4632.
Brent oil futures increased by 2.52 per cent to US$94.78 per barrel and WTI crude was up 2.33 per cent to US$89.30.
The 30-year Treasury bond yields were up 1.40 per cent to 3.942, while the 10-year bond yields rose 1.54 per cent to 3.962.
US Dollar Futures Index decreased by 0.76 per cent to US$112.358.