Consumer spending was tepid last month but exceeded forecasts. Data from the Census Bureau showed retail sales were up 0.1% in August from the month prior, beating economists' expectations for a 0.2% decline. Slowing automobile sales pressured the headline number, though this was offset by strong online sales.

The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon. The blue chip Dow Jones Industrial Average also registered a record closing high,

The Dow Jones Industrial Average (SPGI) jumped 522 points Thursday and closed at a new record high, as the Federal Reserve’s decision to slash interest rates by 50 basis points gave fuel to markets.

Traders on Thursday added to bets the U.S. Federal Reserve's next rate cut will be smaller than the one it delivered on Wednesday, after economic data showed an unexpected drop in unemployment insurance claims.

Rate-sensitive growth stocks like Microsoft, Meta and Alphabet, that have led much of this year's rally, advanced over 1.5% each in premarket trading. Chip stocks also gained, with Nvidia up 2.8%, Advanced Micro Devices rising 3% and Broadcom up 3.

The U.S. dollar rose broadly on Thursday, recovering from an earlier tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut that had been largely priced in by markets. The U.