US Stocks Surge as Oil Prices Plummet and Bond Yields Tumble
The US stock market closed higher on Thursday, following a sharp decline in oil prices and bond yields. The S&P 500 Index rose by 1.14%, while the Dow Jones Industrial Average and Nasdaq 100 Index climbed by 0.61% and 1.73%, respectively.
Oil prices fell nearly 1% on Thursday, with WTI crude plummeting due to easing supply disruptions in the Middle East. The decrease in oil prices alleviated inflation concerns, causing bond yields to drop as well. The 10-year T-note yield slid by 7 basis points to 4.94%, while European government bond yields also declined.
The US economy reported mixed news on Thursday, with weekly jobless claims unexpectedly falling to an 8-week low of 196,000. However, housing starts and building permits fell more than expected in August. Pending home sales rose by 0.3% month-over-month in August, exceeding expectations.