The 30-stock index popped 399.14 points, or 1.3%, to 32,429.25.
The S&P 500 jumped 60.45 points, or 1.5%, to 3,997.45.
The NASDAQ Composite hiked 261.24 points, or 2.2%, to 11,931.23.
Technology shares led the way as investors reduced their Fed hike bets and Treasury yields declined. Microsoft, Nvidia and Apple were among the biggest gainers in the group, which was the hardest hit part of the market as the Fed raised rates 9 straight times in about a year. The turn lower in rates this month is causing investors to rotate back into tech shares.
Block is still a good value stock according to Baird, despite concerns over the ease of which criminal activity can persist on the company’s CashApp service. Shares of Block plummeted in early trading Thursday.
Meanwhile, Baird posits that in a “pretty dire case” where the company loses roughly 20% of CashApp accounts, the result could amount to an 8% hit to total gross profit.
The Fed’s decision and subsequent comments by Chair Jerome Powell at the conclusion of the policymakers’ two-day meeting on Wednesday weighed on stocks.
The central bank raised rates by 25 basis points, as expected. It also hinted that its inflation-fighting tightening campaign could be nearing the end, with the removal of the phrase “ongoing increases” from its statement. While Powell said that “rate cuts are not in our base case” for the remainder of 2023, traders priced in expectations of the central bank lowering rates this year.
Jobless claims unexpectedly nudged lower last week, pointing to a labour market that remains extremely tight.
Initial filings for unemployment insurance totaled 191,000 for the week ended March 18, below the estimate for 198,000, the Labor Department reported Thursday. That was a decline of 1,000 from the previous period.
Prices for the 10-year Treasury slid, moving yields higher to 3.47% from Wednesday’s 3.44%. Treasury prices and yields move in opposite directions.
Oil prices perked 57 cents to $71.47 U.S. a barrel.
Gold prices advanced $39.50 to $1,989.10 U.S. an ounce.