Global stocks advanced on Thursday after a four-session drop to end 2024, while the dollar strengthened after economic data pointed to a US labour market that remained on solid footing.
On Wall Street, US stocks were higher in the early stages of trading, with the S&P 500 on track to snap a four session streak of declines to end 2024. Gains were led by the energy and communication services sectors, which each rose by more than 1%.
"Investors are hopeful that a goldilocks scenario will be the story of 2025, amid promises of lower taxes and the deregulation under a second Trump presidency," said Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown.
The Dow Jones Industrial Average rose 115.48 points, or 0.26%, to 42,655.29, the S&P 500 rose 21.65 points, or 0.38%, to 5,903.94 and the Nasdaq Composite rose 80.30 points, or 0.43%, to 19,393.01. European stocks rose modestly after a sluggish start to the session, also buoyed by energy names.
MSCI's gauge of stocks across the globe rose 1.84 points, or 0.23%, to 843.38 and was on track for its biggest daily percentage gain since December 24. Europe's Stoxx 600 index rose 0.3%.
The dollar jumped to a two-year high on Thursday, building on the strong gains from the prior year as expectations remained intact that growth in the US economy will outpace that of its peers, keeping the Federal Reserve on a slower rate cut path and interest rates elevated.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.46% to 109.04 after climbing to 109.12, its highest since November 10, 2022.
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