The US stock market rose for the second consecutive day on Thursday, after Federal Reserve Chairman Jerome Powell signaled that the central bank may not raise interest rates for the time being.
The S&P 500 index rose 1.9%, marking its largest daily gain since April. The Dow Jones index rose over 560 points, or 1.7%, while the Nasdaq Composite Index rose 1.8%.
All 11 sectors of the S&P 500 Index closed higher, with energy, utilities, and non essential consumer goods sectors leading the way. Interest rate sensitive real estate stocks led gains, rising 3.1%. This week, the mortgage interest rate slightly decreased, marking the first decline in nearly two months.
Bond yields have fallen. The yield on the benchmark 10-year US treasury bond bond fell to 4.668% from 4.79% on Wednesday.
Starbucks was one of the best performing stocks in the S&P 500 index, rising 9.5% as the coffee chain said customers had increased their consumption and ordered more meals. TV streaming platform Roku's revenue exceeded expectations and provided an optimistic sales outlook, with the company's stock price soaring 31%.
Moderna is one of the worst performing companies today. Affected by the weak demand for COVID-19 vaccine, the vaccine manufacturer's sales in the fiscal quarter fell sharply.
Thursday's rally in US stocks spread overseas. The European Stoxx 600 index rose 1.6%.
The oil price rose, and the international benchmark Brent crude oil closed at $86.85 per barrel.