NEW YORK, New York - U.S. stocks bounced higher on Thursday as bond yields eased, and the dollar dived.
"Fed Chair Warsh has told us that he's focused on inflation rather than on payrolls, so even if we get a weak payrolls number tomorrow, that probably will not change his position. If we get a strong one, that could sort of confirm his concern,"CFRA Research's Sam Stovall told CNBC Thursday. "You can't really say that the all-clear has been signalled," nhe added.
The Standard and Poor's 500 climbed 81.01 points to finish at 7,747.61, an increase of 1.06 percent. The benchmark index traded between an intraday low of 7,686.71 and a high of 7,756.76, continuing to trade well above its 52-week trough of 6,316.91 and within striking distance of its peak of 7,816.70. Volume on the index reached 2.62 billion shares.
The Dow Jones Industrial Average delivered a standout performance, soaring 623.98 points to close at 53,685.93, a gain of 1.18 percent. The blue-chip index ranged from 53,286.15 to 53,746.50 during the session, with 403.343 million shares changing hands. The Dow remains far above its 52-week low of 45,057.28 and is approaching its record high of 54,744.33.
The tech-heavy NASDAQ Composite outpaced its peers, rallying 366.23 points to end at 26,584.06, a robust advance of 1.40 percent. The index touched a low of 26,325.06 and a high of 26,644.57, with volume of 5.769 billion shares. The Nasdaq continues to trade comfortably above its 52-week low of 20,690.25 and is closing in on its peak of 27,190.21.
Market analysts attributed the widespread gains to a combination of easing inflation concerns, stronger-than-expected services sector data, and renewed optimism that the Federal Reserve may be nearing the end of its tightening cycle. Technology and financials were among the best-performing sectors, while defensive names lagged behind.
All three U.S. indices are now hovering near or above their 2026 highs, with investors eyeing Friday's jobs report as the next potential catalyst. Meanwhile, the TSX's outsized gain reflected strength in energy and materials stocks, buoyed by rising commodity prices and a weaker U.S. dollar.
Trading volumes were robust across all exchanges, underscoring active participation from both institutional and retail investors. As the closing bells rang, the mood on trading floors was decidedly optimistic, with many market participants looking ahead to what could be another positive session to end the week.
U.S. Dollar Tumbles Across the Board Thursday as BoJ Intervention Shakes Forex Markets
The U.S. dollar suffered a dramatic selloff against all major currencies on Thursday, as the Bank of Japan staged another aggressive intervention to prop up the yen, sending shockwaves through global foreign exchange markets and leaving the greenback deeply bruised.
The EUR-USD pair surged to 1.1628, a gain of 0.35 percent, as the euro capitalized on broad dollar weakness. Traders cited fresh demand for the single currency amid shifting interest rate differentials and fading safe-haven flows into the U.S. currency.
The most eye-catching move came in USD-JPY, which tumbled a staggering 1.85 percent to settle at 155.7700. The yen's sharp appreciation followed what market participants described as "further dramatic intervention" by the BoJ, which appeared to have stepped into the market aggressively during London and New York trading hours. The move caught many leveraged funds off guard, triggering a cascade of stop-loss orders that exacerbated the dollar's decline.
Sterling also advanced solidly, with GBP-USD climbing to 1.3526, an increase of 0.30 percent. The British pound benefited from the broader repudiation of the dollar, as well as resilient U.K. services sector data that reinforced expectations of continued hawkishness from the Bank of England.
The Antipodean currencies followed suit, with AUD-USD rising 0.47 percent to 0.7203. The Australian dollar found additional support from firm commodity prices and renewed risk appetite, as investors interpreted the BoJ's move as a signal that major central banks are willing to act decisively to manage currency volatility.
Against its North American neighbor, the greenback lost ground as USD-CAD fell 0.36 percent to 1.3792. The loonie was buoyed by higher crude oil prices and the generalized retreat of the U.S. currency, though gains were tempered somewhat by lingering concerns over Canadian economic growth.
The Swiss franc, a traditional safe-haven play, strengthened notably as USD-CHF dropped 0.66 percent to 0.8075. The move reflected not only dollar weakness but also renewed demand for the franc amid broader uncertainty about the sustainability of U.S. fiscal and monetary policy.
The dramatic moves have raised speculation that other central banks, including the European Central Bank and the Swiss National Bank, may adjust their own approaches to currency management in the coming days. For now, however, the dollar remains on the back foot, with traders and investors bracing for further volatility as Friday's U.S. jobs data looms large.
Global Equities Close Divided as Canada Leads Gains, Hang Seng and Sensex Slip
World stock markets delivered a divided performance on Thursday, with European indices mostly advancing while Asian benchmarks struggled, as investors weighed interest rate expectations and regional economic data.
Canada's S&P/TSX Composite Index delivered the day's strongest performance among major North American benchmarks, surging 541.51 points to settle at 36,633.12, a gain of 1.50 percent. The TSX traded between 36,259.12 and 36,669.05, with volume of 247.518 million shares. The index remains well above its 52-week low of 28,734.90 and is approaching its record high of 37,069.10.
In London, the FTSE 100 closed at 10,831.52, climbing 75.07 points, or 0.70 percent. The index traded between a low of 10,742.66 and a high of 10,866.82, remaining well above its 52-week low of 9,155.50.
Frankfurt's DAX P finished at 26,003.32, adding 163.99 points, a gain of 0.63 percent. The German benchmark hit an intraday peak of 26,007.79 after touching a low of 25,784.84, and continues to trade far above its 52-week trough of 21,863.81.
Paris saw more modest gains, with the CAC 40 rising just 5.77 points to settle at 8,286.40, a marginal increase of 0.07 percent. The index ranged from 8,240.50 to 8,288.82 during the session.
The pan-European EURO STOXX 50 Index closed at 6,382.59, up 20.44 points or 0.32 percent, while the Euronext 100 Index ended at 1,906.82, a gain of 1.78 points or 0.09 percent. Brussels' BEL 20 outperformed its regional peers, surging 53.34 points to 5,879.05, a solid advance of 0.92 percent.
Asian markets, however, painted a different picture. Hong Kong's HANG SENG INDEX fell 97.90 points to end at 25,213.31, a decline of 0.39 percent, after trading between 25,160.38 and 25,538.15. India's S&P BSE SENSEX dropped 417.49 points to close at 76,152.86, down 0.55 percent, with a session high of 76,924.48.
Japan's Nikkei 225 slipped 111.16 points to finish at 64,214.48, a loss of 0.17 percent, while Taiwan's TSEC CAPITALIZATION WEIGHTED INDEX fell 307.06 points to 45,857.66, a decrease of 0.67 percent. New Zealand's S&P/NZX 50 INDEX GROSS declined 84.39 points to 13,846.18, off 0.61 percent.
On the upside in Asia-Pacific, Australia's S&P/ASX 200 gained 41.70 points to close at 9,020.10, up 0.46 percent, while the broader ALL ORDINARIES added 38.00 points to end at 9,198.30, a rise of 0.41 percent. Singapore's STI Index edged up 3.60 points to 5,747.71, a fractional gain of 0.06 percent. Malaysia's FTSE Bursa Malaysia KLCI advanced 6.39 points to 1,715.13, up 0.37 percent, and Indonesia's IDX COMPOSITE climbed 72.12 points to 6,667.89, a gain of 1.09 percent.
South Korea's KOSPI Composite Index rose 16.76 points to 6,579.48, an increase of 0.26 percent, while China's SSE Composite Index inched up just 0.70 points to close at 3,942.09, a marginal 0.02 percent gain.
Elsewhere, in the Middle East, the TA-125 in Tel Aviv rose 30.69 points to 4,169.55, an increase of 0.74 percent. Cairo's EGX 30 Price Return Index jumped 590.60 points to close at 56,270.30, a robust gain of 1.06 percent on volume of 269.479 million.
In Johannesburg, the Top 40 USD Net TRI Index posted the day's strongest performance among major indexes, rallying 119.65 points to 7,337.05, a rise of 1.66 percent.
(This report incorporates quotes retrieved with the assistance of artificial intelligence).
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