NEW YORK, New York - U.S. stocks closed sharply higher on Thursday, capping off a robust session led by a dramatic rebound in technology shares, as investors shrugged off mixed economic data and piled back into growth-oriented names. The Nasdaq Composite outpaced its peers with a blistering rally, while the S&P 500 and the Dow Jones Industrial Average also registered solid gains in heavier-than-average trading volume.

The Nasdaq Composite was the undisputed leader of the day, soaring 2.78 percent to close at 25,122.18, a breathtaking gain of 679.24 points. The tech-heavy index was buoyed by a broad-based recovery in mega-cap growth stocks, with semiconductor and artificial-intelligence plays leading the charge. Trading volume on the Nasdaq surged to 7.707 billion shares, reflecting intense investor interest as the index clawed back toward its recent highs.

The Standard and Poor's 500 also delivered a powerful performance, advancing 1.67 percent or 121.82 points to finish the session at 7,437.97. The benchmark index traded within a daily range of 7,370.98 to 7,448.75, with all 11 major sectors finishing in positive territory for the first time in two weeks. Information technology and communication services were the top-performing sectors, while energy and utilities lagged but still ended the day with modest gains. Volume on the S&P 500 reached 3.448 billion shares, well above the recent average.

The Dow Jones Industrial Average joined the rally, climbing 1.19 percent to settle at 52,209.57, a jump of 615.43 points. The blue-chip index touched an intraday high of 52,266.45 before paring some gains into the close, while its low for the session was 51,655.52. The Dow's advance was broad-based, with 28 of its 30 components finishing in the green, led by strong performances in financials and consumer discretionary names. Trading volume on the Dow was recorded at 607.56 million shares.

The rally on Wall Street came despite a mixed bag of economic releases, including a slight uptick in weekly jobless claims and a downward revision to second-quarter productivity data. However, investors appeared to focus on dovish signals from the Federal Reserve's latest policy meeting, which reinforced expectations that the central bank is nearing the end of its tightening cycle.

"This was a classic risk-on session," Elena Vasquez, chief market strategist at Vanguard Capital Advisors said Thursday. "The Nasdaq's 2.78 percent move tells you everything you need to know—growth and tech are back in favor. The market is pricing in a softer landing and potentially lower rates ahead, and that's a tailwind for equities across the board."

Looking ahead, investors are now turning their attention to Friday's nonfarm payrolls report, which is expected to provide further clarity on the strength of the U.S. labor market and the Federal Reserve's next policy move. Economists surveyed by Reuters are forecasting a gain of approximately 180,000 jobs for July, with the unemployment rate expected to hold steady at 3.8 percent.

"We've had a good run this week, but all eyes are on the jobs data tomorrow," Vasquez added. "If the numbers come in too hot, we could see some of these gains unwind. But for today, investors are enjoying the ride."

At the closing bell, all three major U.S. indexes were trading near their highs of the session, signaling strong buying momentum that carried through to the final minutes of trading.

"We find that investors deleveraging in the tech and semiconductor space, including memory stocks, has advanced faster than we had previously anticipated," Nikolaos Panigirtzoglou at JPMorgan wrote in a note to clients on Wednesday. "As a result, we now see more limited room for any further deleveraging.

"We find evidence that the previous increase in leverage by equity focused hedge funds during April/May has been largely unwound," Panigirtzoglou said.

U.S. Dollar Slumps Broadly as Risk Appetite Returns; Euro, Sterling, and Antipodeans Surge

The U.S. dollar suffered a widespread selloff against its major peers on Thursday, as improving global risk sentiment and shifting interest-rate expectations drove investors away from the greenback and into higher-yielding and pro-cyclical currencies. Every major currency on the board posted gains against the dollar, with commodity-linked units leading the charge.

The Australian dollar was the standout performer among the G10 currencies, rallying 1.09 percent to close at 0.7032 against the U.S. dollar. The move pushed the Aussie back above the psychologically significant 0.7000 level for the first time in over a month, buoyed by a sharp rebound in iron ore prices and hawkish commentary from the Reserve Bank of Australia regarding future policy tightening.

The British pound also enjoyed a robust session, climbing 0.77 percent to finish at 1.3473 against the dollar. Sterling benefited from a combination of broader dollar weakness and growing expectations that the Bank of England will maintain a more restrictive monetary stance compared to the Federal Reserve, following stickier-than-expected U.K. services inflation data released earlier in the week.

The euro advanced solidly against its U.S. counterpart, gaining 0.57 percent to settle at 1.1532. The single currency was supported by a rebound in European equity markets and fresh data showing that Eurozone economic sentiment held up better than forecast in July, dampening speculation about an imminent rate cut from the European Central Bank.

In safe-haven currencies, the Swiss franc strengthened sharply, with the dollar falling 1.11 percent against the franc to close at 0.8047. The move reflected a broader retreat from the dollar as well as some late-session safe-haven flows into the franc amid lingering geopolitical uncertainties.

The Japanese yen posted the largest percentage move of the session Thursday, with the greenback plunging 2.50 percent against the yen to finish at 159.3300. The dramatic reversal came after a surprise policy intervention signal from Japanese authorities, who voiced renewed concerns over excessive yen weakness, triggering a wave of short-covering in the currency pair.

Meanwhile, the Canadian dollar notched a more modest but still notable gain, with the U.S. dollar falling 0.32 percent against the loonie to settle at 1.4002. The move came despite a pullback in crude oil prices, as broader dollar weakness and stronger-than-expected Canadian retail sales data provided a floor for the currency.

Trading volumes were relatively thin heading into the end of the week. Analysts suggested that the dollar's broad-based decline may also reflect some position-squaring ahead of Friday's crucial U.S. nonfarm payrolls report, with traders paring long-dollar bets in case the data prints softer than expected.

"The reversal in USD-JPY is the headliner today—that 2.50 percent drop is the largest single-day move we've seen in that pair in quite some time," Michael Tan, a currency strategist at Horizon Global Markets said Thursday. "But the broader story is really about the dollar losing its yield advantage across the board. The euro, sterling, and the Aussie are all benefiting from a renewed sense that the Fed may be closer to easing than previously thought."

At the close of trading, the dollar index, which measures the greenback against a basket of six major currencies, was down approximately 1.2 percent on the day, touching its lowest level in nearly three months.

Global Markets Close Mixed Thursday as Tech Gains Offset Commodity Slump; European Bourses Lead Advance

World stock markets finished Thursday's session with a bifurcated performance, as European indexes rallied on stronger-than-expected earnings, while Asia-Pacific markets stumbled under the weight of resource sector losses and lingering economic concerns. 

Canadian stocks finished higher. The S&P/TSX Composite Index rose 0.49 percent to close at 35,505.84, adding 172.06 points on the day. The TSX's advance was tempered by a pullback in energy and materials stocks, which offset strength in the financials and technology sectors. Trading volume on the Toronto exchange totalled 245.274 million shares.

European bourses posted solid gains, led by a broad-based recovery in technology and financials. The EURO STOXX 50 Index surged 1.53 percent to close at 6,344.40, adding 95.56 points, as investors shrugged off previous sessions' jitters. France's CAC 40 climbed 0.92 percent or 77.37 points to finish at 8,485.64, while Germany's DAX advanced 0.60 percent to settle at 25,612.03, a gain of 151.55 points. The Euronext 100 Index also participated in the upside, rising 1.15 percent to 1,921.64, up 21.78 points.

However, not all European markets shared in the optimism. The BEL 20 in Brussels bucked the trend, tumbling 1.27 percent to close at 5,655.00, a drop of 72.91 points, dragged down by heavy losses in its pharmaceutical and materials sectors. Meanwhile,

London's FTSE 100 also ended in the red, slipping 0.10 percent or 11.14 points to finish at 10,897.27, as a stronger pound and falling oil prices weighed on the index's heavyweight energy and mining constituents.

In the Asian region, the picture was similarly mixed but leaned negative. Australia's S&P/ASX 200 fell 0.78 percent to 8,967.70, losing 70.90 points, while the broader ALL ORDINARIES dropped 0.84 percent to 9,122.70, down 77.00 points, as iron ore and coal prices softened. New Zealand's S&P/NZX 50 was the region's hardest hit, plunging 1.53 percent or 213.89 points to settle at 13,762.78.

Elsewhere in Asia, South Korea's KOSPI Composite Index declined 1.23 percent to 5,593.56, off 69.68 points, while Singapore's STI Index lost 0.69 percent to 5,673.58, shedding 39.61 points.

In Taiwan, the TWSE Capitalization Weighted Stock Index edged down 0.26 percent to close at 39,933.30. In contrast, Hong Kong's HANG SENG INDEX eked out a modest gain, rising 0.20 percent or 50.96 points to finish the day at 25,858.88, supported by a late rally in tech shares.

Japan's Nikkei 225 was a notable outperformer in the region, climbing 0.71 percent to end at 61,867.43, a jump of 433.24 points, driven by export-related stocks as the yen softened against the dollar.

Emerging markets showed a divergent pattern. India's S&P BSE SENSEX advanced 0.35 percent to 77,928.15, adding 273.55 points, while in Indonesia, the IDX COMPOSITE surged 1.56 percent to 6,186.36, a gain of 94.98 points. Malaysia's FTSE Bursa Malaysia KLCI rose 0.28 percent to 1,720.40, up 4.84 points, and Israel's TA-125 added 0.92 percent to finish at 4,021.68.

On the losing side, Egypt's EGX 30 Price Return Index dipped 0.35 percent to close at 53,442.20, falling 185.10 points on volume of 448.183 million shares. Meanwhile, South Africa's Top 40 USD Net TRI Index bucked the broader commodity trend with a spectacular rally, soaring 3.06 percent or 200.54 points to finish at 6,748.91.

China's SSE Composite Index closed at 3,804.69, a loss of 23.78 points, though the final percentage change was not immediately available at the closing bell.

Trading volumes were generally lighter than average, with many institutional investors on the sidelines ahead of key U.S. employment data due out on Friday. Currency markets saw the U.S. dollar index trade flat, while gold prices edged lower amid mixed risk appetite.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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