Slowdown in Inflation Boosts U.S. Stocks

U.S. stocks closed sharply higher on Thursday, as economic data showed a slowdown in inflation and a loosening in the labor market, leading to optimism that the Federal Reserve may be nearing the end of its interest rate hike cycle. All three main U.S. stock indexes rose, with a significant boost from interest rate-sensitive large-cap stocks, pushing the Nasdaq, heavily weighted by tech shares, to its largest percentage jump in a single day in nearly a month. According to preliminary data, the S&P 500 index closed up 53.96 points, or 1.33%, at 4,145.91 points, the Nasdaq Composite increased by 236.94 points, or 1.99%, to 12,166.27 points, and the Dow Jones Industrial Average rose by 382.54 points, or 1.14%, to 34,029.04 points.