Wall Street stocks recorded gains, supported by economic data that strengthened expectations that the Federal Reserve (Fed) will cut interest rates in December.
All three major US indices closed in positive territory, with the Dow Jones leading the market.
However, the decline in artificial intelligence (AI) leader Nvidia shares limited the rise of the Nasdaq Composite index.
Nvidia shares fell 2.6%, while the Philadelphia Semiconductor Index SE strengthened by 0.2%.
The Dow Jones index rose 1.43% to 47,112.45 points, the S&P 500 increased 0.91% to 6,765.89 points, while the tech-focused Nasdaq gained 0.67% to 23,025.59 points.
Recent economic data mostly supports expectations that the Federal Open Market Committee (FOMC) will reduce the Fed funds rate by 25 basis points at the December meeting.
However, some official reports were slightly affected due to the prolonged government shutdown.
In other developments, the Department of Commerce and Labor each released September reports on the Producer Price Index (PPI) and retail sales, showing that spending and inflation rates are becoming more controlled.
Latest data from the Conference Board shows consumer confidence declined more than expected, with nearly a 12% reduction in short-term expectations.
The financial markets now price in an 84.7% probability of a rate cut, up from 50.1% last week.
This probability increased a few days after dovish statements from New York Fed President John Williams and Fed Governor Christopher Waller compared to other policymakers.
Meanwhile, department store Kohl’s shares surged 42.5% while clothing retailer Abercrombie & Fitch rose 37.5%, after both companies raised their annual earnings forecasts.
Trading volume on the US exchanges was valued at $16.68 billion, compared to an average of $19.78 billion over the past 20 trading days.
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