US stocks close hitting historical high points

​​​​​​​By Gokhan Ergocun

ISTANBUL (AA) - US stocks closed Thursday at record levels as expectations mounted that the US Federal Reserve (Fed) would cut interest rates next week.

The Dow added 1.36%, or 617.08 points, to close at 46,108 as it climbed above 45,000 for the first time.

The Nasdaq rose 0.72%, or 57.01 points, to close at 22,043.07, while the S&P 500 gained 0.85%, or 55.43 points, to 6,587.47, with both indexes hitting historic highs.

The Volatility Index (VIX), also known as the “fear index," dropped 4.3% to 14.69.

Data released Thursday pointed to an acceleration in consumer price increases and a further weakening in the labor market, but the markets followed a positive trend.

The Consumer Price Index (CPI) rose 0.4% month-on-month in August, exceeding expectations, and 2.9% year-on-year, in line with expectations.

Annual inflation reached its highest since January.

The core CPI, which excludes volatile energy and food prices, rose 0.3% monthly and 3.1% annually in August, in line with expectations, similar to July.

The number of people filing for unemployment benefits for the first time rose by 27,000 to 263,000 in the US during the week ending Sept. 6.

Unemployment claims, which exceeded expectations, reached their highest since October 2021.

Data on the claims were consistent with last week's weak employment data and reinforced evidence that the US labor market is weakening.

Expectations remain strong that the Fed will cut interest rates next week, despite accelerating consumer inflation data.

International Monetary Fund (IMF) spokesperson Julie Kozack said at a news conference that, given the downside risks to employment, there is room for the Fed to start lowering its policy rate.

Meanwhile, the federal government's budget deficit fell 9% in August compared to the same month last year to $345 billion, partly due to tariff revenues, which went up by 296% year-on-year.