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US stock indices hit record highs and continue August rally

On Thursday, the US stock indices show a strong growth amid the upcoming release of domestic macroeconomic statistics.

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As of this writing, the Dow Jones Industrial Average gained 0.16% to 35344. The NASDAQ-100 climbed by 0.19% to 15639,5. The S&P 500 index jumped 0.17% to the level of 4529.

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Analysts explain such market dynamics by the anticipation of the US internal statistics, the publication of which is scheduled for Thursday evening.

The Labor Department will report on the number of jobless claims for the previous week. According to expectations, the number of claims decreased to 345,000. The officials will also publish the data on the current balance of trade. The US trade deficit in July decreased by 6.2% (to 71 billion) compared to June, analysts said.

However, investors are expecting data on the US unemployment rate for August. It is the most important index of the week for them. The publication is expected on Friday. Experts forecast the unemployment rate fell to 5.2% in August from 5.4% in the preceding month.

The NASDAQ Composite stock index reached a new high closing Wednesday's trading session. Notably, the active growth of the stock index began in August.

Meanwhile, at the close of yesterday's trading session, the NASDAQ Composite Index gained 0.3% to 15309.38, the S&P 500 rose 0.1% to 4524.09 and the DJIA reached a 0.1% growth to 35312.53.

During the summer, the US stock markets demonstrated strong growth amid expectations of economic recovery. In this regard, it will become a stimulus for future increases in corporate profits. Today, the stock market participants are confident that the indices will continue their rally.

However, experts believe the future is not that bright assuming this fall may bring high volatility to the US stock markets. The experts consider the Fed tapering the main reason for a possible decline.

Additionally, the Chinese government continues to impose strict restrictions on technology firms, so the markets may experience a downtrend. At the same time, market experts emphasize that a sufficiently large volume of liquidity is still unused, and this circumstance may support stock indicators at any moment.

The material has been provided by InstaForex Company - www.instaforex.com