Investing.com – The Wall Street rally continued on Thursday, shaking off a spike in rate hike expectations following data showing the pace of inflation hit a seven-month high in August.
The Dow Jones Industrial Average closed higher at 22,214. The S&P 500 traded 0.11% lower while the Nasdaq Composite traded at 6429.08, down 0.48%.
Following the release of better-than-expected inflation data on Thursday, investor expectations of a December rate hike jumped to over 50% from 42% a day earlier, according to investing.com's Fed rate monitor.
The Labor Department said on Thursday its consumer Price index rose 0.4% last month after edging up 0.1% in July. The uptick in consumer prices in August was the largest monthly gain in seven months and lifted the year-on-year increase in the CPI to 1.9% from 1.7% in July.
In a separate report the U.S. Department of Labor reported that initial jobless claims decreased by 14,000 to 284,000 in the week ended Sept. 10, confounding forecasts of a 2,000 increase.
Meanwhile, geopolitical uncertainty resurfaced after North Korea made fresh threats in response to the latest United Nation sanctions, vowing to sink Japan with a nuclear weapon and “reduce the U.S. mainland into ashes and darkness.”
In corporate news, shares of Apple Inc (NASDAQ:AAPL) faltered for the third day in row, reflecting investor disappointment over the later-than-expected release date of Apple’s iPhone X.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: United Technologies Corporation (NYSE:UTX) up 2.6%, Pfizer Inc (NYSE:PFE) up 2% and Merck & Company Inc (NYSE:MRK) up 1.7%
The Travelers Companies Inc (NYSE:TRV) down 1.3%, Apple Inc (NASDAQ:AAPL) down 1% and Walt Disney Company (NYSE:DIS) down 0.8%, were among the worst Dow performers of the session.