Nasdaq achieved an increase of approximately 0.7%, securing its fourth consecutive record close and reaching its inaugural closing above the 22,000 threshold. On Thursday, market achieved remarkable heights, propelled by the latest inflation data that showed a modest uptick in consumer prices for August, coupled with a surge in jobless claims reaching their highest level in nearly four years. The data collectively shaped projections about the expected pace of interest rate reductions this year.

The Dow Jones Industrial Average took the lead in pushing stocks upward, climbing by 1.4%, which translates to more than 600 points, and it closed above 46,000 for the very first time. The S&P 500 experienced an increase of more than 0.9%. The Consumer Price Index report for August, released on Thursday, showed signs that President Trump’s tariffs are affecting consumer costs, after a reading on wholesale inflation for the month came in cooler than expected. The CPI report revealed that inflation remained persistent last month, with the annual headline rate rising to 2.9%, an increase from 2.7% in July.

In the latest data, prices increased by 0.4% month over month, a rise from July’s 0.2% increase. This surpasses the anticipated monthly gain of 0.3% as projected by analysts. However, in a shift from earlier patterns, markets are expected to overlook the current inflationary pressures. The upcoming print is not expected to dissuade the Federal Reserve from proceeding with a rate cut at its next meeting, especially since recent federal data has highlighted weaknesses in the labor market.

An update on Thursday highlighted a worsening employment environment, as applications for unemployment benefits rose to 263,000, representing the highest level in nearly four years. Market participants are expecting a probability greater than 90% for a quarter-point reduction in the upcoming week, with a substantial majority predicting that the central bank will execute three rate cuts before the end of the year.