Dow Breaks 46,000 for First Time as S&P 500, Nasdaq Hit Records

U.S. stocks surged Thursday, with the Dow Jones Industrial Average closing above 46,000 for the first time and both the S&P 500 and Nasdaq Composite setting record highs, as investors bet on Federal Reserve rate cuts amid signs of a cooling labor market.

The Dow added 616.87 points, or 1.36%, to 46,107.8, a milestone level powered by broad-based gains. The S&P 500 advanced 55.42 points, or 0.85%, to 6,587.46, while the Nasdaq climbed 157.01 points, or 0.72%, to 22,043.1. The Russell 2000 index of smaller companies also outperformed, rising 1.84% to 240.77.

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The rally came despite declines in key commodities. Crude oil futures fell 2.20% to $62.27, extending a recent retreat, while gold futures edged down 0.16% to $3,676.20, reflecting shifting investor sentiment as equities marched higher.

In another sign of investor enthusiasm, Figure Technologies completed its upsized initial public offering at $25 a share, above its already raised range. The blockchain-focused lender sold 31.5 million shares to raise roughly $787.5 million, valuing the company at about $5.3 billion. Backed by underwriters including Goldman Sachs and BofA Securities, Figure comes to market with positive earnings and a bold pitch: to rebuild consumer credit infrastructure on blockchain rails. Executive Chairman Mike Cagney told CNBC he aims to position the firm among the “Mag 7” of Web3, with plans to issue an on-chain version of its equity in the near future.

Attention is now turning to Friday's debut of Gemini Space Station, the cryptocurrency exchange co-founded by Cameron and Tyler Winklevoss. The company is set to begin trading on the Nasdaq under the ticker GEMI after pricing its initial public offering late Thursday in a range of $24 to $26 a share, up from earlier estimates. At the top of the range, the deal would raise about $433 million and value Gemini near $3.2 billion, with Nasdaq investing $50 million alongside the offering. The IPO is expected to be one of the year’s highest-profile fintech listings, testing investor appetite for digital assets just as U.S. equity markets notch fresh records .

Economic Data Supports Fed Easing Path

Thursday’s gains were fueled by fresh economic data that pointed to persistent but contained inflation alongside signs of a weakening job market. The Consumer Price Index rose 0.4% in August, above consensus expectations, with year-over-year inflation at 2.9%. Shelter and food costs were key drivers, offset by softer energy prices earlier in the summer.

At the same time, weekly jobless claims surged to 263,000, the highest since 2021, suggesting cooling momentum in the labor market. The spike gave the Federal Reserve added cover to begin cutting interest rates at its September meeting. Markets are now pricing in a 25 basis point cut, with futures indicating expectations for additional easing into year-end.

Treasuries and Commodities Reflect Shifts

Treasury yields fell, with the benchmark 10-year dipping below 4% for the first time since April, underscoring conviction that inflation pressures are no longer spiraling. Oil’s slide highlighted concerns about demand in a slowing economy, while gold’s modest dip signaled investors were favoring risk assets after weeks of volatility.

Market Milestones

The Dow’s close above 46,000 marks a new psychological threshold for the 30-stock blue-chip index. The Nasdaq and S&P 500 also closed at record levels, reflecting investor optimism that the Fed can orchestrate a soft landing as inflation moderates and growth steadies.

With attention turning to next week’s Fed meeting, markets are bracing for confirmation that policymakers will deliver their first rate cut of the easing cycle, setting the stage for potentially lower borrowing costs into year-end.