The Dow Jones recovered from a sharp 300-point plunge following the release of a troubling ISM Non-Manufacturing Index report to record a gain of nearly 100 points on Thursday.

Expectations for a Fed rate cut in October rose for the third straight day, helping boost the fragile stock market.

An additional push came from Donald Trump, who stepped in to announce a Chinese delegation was coming to the US for trade talks, bolstering risk sentiment.

Dow Jones Rallies as Rate Cut Expectations Hit 90%

Shortly before Thursday’s close, the Dow Jones Industrial Average had gained 63.45 points or 0.25% to trade at 26,142.07. The Dow had dropped as low as 25,743.46 during the morning session.

The Dow Jones recovered from more bad data on Thursday as rate cut expectations soared and Donald Trump announced a Chinese delegation was coming to the US for trade talks. | Source: Yahoo Finance

The Nasdaq outperformed with a 0.86% rally, while the S&P 500 rose 0.54%.

Commodity markets were mixed again. Oil sold off, but gold continued to press toward record highs.

The benefits of a weaker US dollar were clearly seen on Thursday. The DXY declined as Federal Reserve rate cut expectations for…

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Author: Francois Aure


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