4:30pm: Optimism lifts stocks
US stocks finished Thursday's trading day higher as investors remained optimistic that the Federal Reserve’s rate hiking campaign is close to ending.
The S&P 500 was up 1.9% at 4,318 points, the Nasdaq was up 1.8% at 13,294 points, and the Dow Jones was up 1.7% at 33,839 points.
12:00pm: Buoyant mood continues
US stocks remained in a buoyant mood as investors took the view that interest rates have peaked sending bond yields lower and equities higher.
At midday, the Dow Jones Industrial Average was up 368.99 points, 1.1%, at 33,643.57, the S&P 500 was up 60.72 points, 1.4%, at 4,298.58 and the Nasdaq Composite was up 172.36 points, 1.3%, at 13,233.83.
Chris Beauchamp at online trading platform IG said: "Stock markets have a definite groundhog feel to them today, as once again hopes of a peak in interest rates have seen stocks rally."
"This rally comes almost on cue in seasonality terms, but is doubtless based on expectations that rates will pause here, and in due course come down."
"Investors have been disappointed before on this front however, so need to resist the temptation to charge back into stocks too quickly.”
Starbucks shares leapt 10.5% after the coffee chain report a forecast-beating set of results.
Chief executive Laxman Narasimhan said demand for Starbucks’ pricey drinks remains strong, despite concerns about affordability: “We’re not really seeing any change in the sentiment in our customer base”.
Comparable store sales rose 8%, more than analysts forecast, helped by a 9% rise in the US.
That helped underpin record fourth quarter sales of $9.4 billion.
9:40am: US stocks power ahead on hopes rates have peaked
US stocks opened higher on Thursday on hopes interest rates have peaked after the Federal Reserve left interest rates unchanged on Wednesday.
At the open, the Dow Jones Industrial Average was up 302.94 points, 0.9% at 33,577.52, the S&P 500 was up 50.95 points, 1.2%, at 4,288.81 and the Nasdaq Composite was up 170.21 points, 1.3%, at 13,231.68.
New applications for US state unemployment aid, considered a proxy for lay-offs, rose to their highest level in almost two months, in signs that the Fed's previous rate hikes were cooling the labour market.
Initial jobless claims totalled 217,000 during the week ending October 28, the labour department said, their highest level since the week ended September 9.
Economists expected a figure of 210,000.
In company news, Moderna slumped 12.5% after third quarter earnings missed expectations but Eli Lilly jumped 7.3% after reporting third-quarter revenue and adjusted earnings that topped estimates on strong demand for its diabetes drug Mounjaro.
7:00am: US stocks called higher after Fed leaves rates unchanged
US stocks are expected to open higher after the Federal Reserve left interest rates unchanged with the market increasingly hopeful that rates have peaked.
In pre-market trading, futures for the Dow Jones Industrial Average were up 0.3%, while those for the S&P 500 were 0.5% higher, and contracts for the Nasdaq 100 futures rose 0.8%.
In a widely expected move, the US central bank unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.50%, a 22-year-high, where it has been since July.
Susannah Streeter at Hargreaves Lansdown said: "’There has been a wave of relief that the Fed didn’t rock the boat and stuck to the expected course by keeping interest rates on hold."
Goldman Sachs (NYSE:GS) described the FOMC statement and the press conference as “slightly dovish overall, and the market appeared to agree.”
Jerome Powell, chair of the Federal Reserve, said the US central bank remains "strongly committed" and "squarely focused" on getting inflation back to its 2% target, leaving the door ajar for a further interest rate increase.
He cautioned against reading too much into the idea that they are on an extended pause, saying no decision on what they will do at the December meeting has been made.
Policy would need to remain restrictive until inflation was seen to be on a "sustainable path," to 2%, he stated.
Andrew Hunter at Capital Economics said by leaving rates unchanged while continuing to flag the possibility of further tightening to come, the Fed indicated today that it remains in 'wait and see' mode.
"But we suspect the data over the coming weeks will see the case for a final hike continue to erode, with the Fed likely to start cutting rates again in the first half of next year," he added.
Results from Apple will grab the headlines after the market close while Eli Lilly, ConocoPhillips (NYSE:COP), Moderna, Molson Coors, Fox, Shopify and Paramount Global (NASDAQ:PARA) will report before the market opens.
DraftKings, Carvana and Booking Holdings will report after the closing bell.