Stocks Surge as Weak US Economic News Eases Rate Hike Concerns

Stocks have rallied today after weak US economic news eased concerns about an impending Fed rate hike. The S&P 500 Index is up by +0.90%, while the Dow Jones Industrial Average and Nasdaq 100 Index are up by +0.54% and +1.23%, respectively.

The weaker-than-expected reports on nonfarm payrolls, factory orders, and wage pressures have reduced the chance of a Fed rate hike at this month's FOMC meeting to 20% from 26%. Additionally, lower crude oil prices are contributing to a positive market sentiment, with WTI crude down by more than -3% after the G7 nations announced a release of 100 million barrels of crude and diesel supplies from strategic reserves.

Chipmakers and AI-infrastructure stocks have led gains in the broader market, with the iShares Semiconductor ETF up +2% at a 2.75-month high. Among individual stocks, Tesla is up more than +5%, followed by Alphabet, Nvidia, Amazon, Apple, Meta Platforms, Microsoft, and others.