Fri, May 9, 2025
Thu, May 8, 2025

Stock Market Today: Stocks Rise Despite Stagflation Risk

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By the closing bell, the blue-chip Dow Jones Industrial Average was up 0.7% to 41,113, the broad-based S&P 500 had risen 0.4% to 5,631, while the tech-heavy Nasdaq Composite was higher by 0.3% to 17,738.
The stock market saw gains on Thursday, with the Dow Jones Industrial Average rising by 115 points or 0.3%, the S&P 500 increasing by 0.5%, and the Nasdaq Composite advancing by 0.7%. This positive movement occurred despite concerns about stagflation, a scenario characterized by stagnant economic growth and high inflation, which was highlighted by recent economic data showing a slowdown in U.S. GDP growth to 1.1% in the first quarter and persistent high inflation rates. Investors were encouraged by strong corporate earnings, particularly from Meta Platforms, which reported better-than-expected results and provided an optimistic outlook, boosting its stock by 14%. Additionally, the market reacted positively to a drop in initial jobless claims to 230,000, suggesting resilience in the labor market. Despite these gains, the looming threat of stagflation and the Federal Reserve's potential response to it continue to be significant concerns for investors.

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