S&P 500 closes at record high after Fed signals it will keep stimulating the economy
- The S&P 500 extended record highs on Thursday after Federal Reserve Chair Jerome Powell spoke at this year's virtual Jackson Hole symposium.
- Powell outlined the central bank's overhauled strategy for controlling inflation and avoiding future crises. He also signaled that the Fed's monetary policy will remain accommodative as it seeks to stimulate the US economy.
- On the economic-data front, initial jobless claims came in at 1 million for the week that ended on Saturday, in line with consensus estimates.
- A COVID-19 test produced by Abbott Laboratories received emergency use authorization from the Food and Drug Administration, boosting hopes that wait times for results will shorten. Abbott shares spiked on the news.
- Oil prices traded lower. West Texas Intermediate crude fell as much as 2.4%, to $42.36 per barrel.
- Watch major indexes update live here.
The S&P 500 set a new closing record on Thursday, extending its multiday streak, after Federal Reserve Chair Jerome Powell spoke at this year's virtual Jackson Hole symposium. Both the S&P 500 and the Nasdaq composite indexes reached all-time intrday highs shortly after the market open.
Powell outlined the central bank's overhauled strategy for controlling inflation and avoiding future crises. He also signaled that the Fed's monetary policy will remain accommodative as it seeks to stimulate the US economy. Equity futures turned positive as he spoke and opened higher after an overnight sell-off.
Meanwhile, the Dow Jones industrial average erased all post-coronavirus losses at one point on Thursday. The 30-company benchmark has lagged both the S&P 500 and Nasdaq throughout the recent recovery.
Here's where US indexes stood at the 4 p.m. ET market close on Thursday:
- S&P 500: 3,484.55, up 0.2%
- Dow Jones industrial average: 28,492.27, up 0.6% (160 points)
- Nasdaq composite: 11,625.34, down 0.3%
On the economic-data front, initial jobless claims came in at 1 million for the week that ended on Saturday, in line with consensus estimates. Continuing claims, measuring the sum of Americans receiving unemployment benefits, totaled 14.5 million for the week that ended on August 15, a slight decrease from the prior week.
Abbott Laboratories received emergency use authorization from the Food and Drug Administration on Wednesday. The company, which saw its stock spike as much as 10%, says its test will cost $5 and deliver results in 15 minutes.
Spot gold fell as much as 2.3%, to $1,910.13 per ounce. Gold briefly surpassed $2,000 per ounce earlier this month as investors bought the precious metal as an inflation hedge.
Oil prices fell. West Texas Intermediate crude slid as much as 2.4%, to $42.36 per barrel. Brent crude, oil's global benchmark, fell 2.4%, to $44.56, at intraday lows.