US stock indices hit all-time highs as rate cut hopes rise
US stock indices hit all-time highs on Thursday, with the Dow surging over 600 points to close above 46,000 and the S&P 500 notching its 23rd record close of 2025.
This rally comes as new jobless claims reached their highest level since late 2021, fueling hopes that the Federal Reserve might cut interest rates soon.
Rate cut bets fuel market surge
A softer job market usually means the Fed could lower rates—good news for investors and anyone watching borrowing costs.
The Nasdaq also notched a record high after jobless claims climbed to 265,000.
Markets are betting big on a rate cut at the Fed's September meeting, though some experts say it's not a done deal yet.
Analyst raises S&P target amid Fed rate cut speculation
August inflation was slightly hotter than expected, but investors seem more focused on rising unemployment than price hikes right now.
Oil prices dropped too, thanks to forecasts of extra supply.
Analyst Ed Yardeni even raised his year-end target for the S&P 500 to 6,800—and says if the Fed goes easy with policy, we might see it push toward 7,000 by year's end.