US stocks climb as markets anticipate inflation data

Dow Jones influenced by key economic developments

U.S. stock indices concluded Thursday's session with substantial gains, buoyed by economic data that fostered optimism about the Federal Reserve's policy. Market sentiments are leaning towards the possibility of a 'soft landing' by the Fed, which involves curbing inflation without triggering a recession and sustaining growth.

Recent final figures revealed that the U.S. Gross Domestic Product (GDP) grew at an annual rate of 4.9% in the quarter ending September. This rate, while slightly lower than the preliminary estimate of 5.2%, is considerably higher than the 2.1% growth observed in the second quarter.

Concurrently, the number of weekly jobless claims in the U.S. edged up to 205,000 last week from 203,000, defying expectations which pointed to 214,000 claims.

The market's focus now shifts to the upcoming release of the U.S. Personal Consumption Expenditures (PCE) Price Index, which is the Federal Reserve's preferred measure of inflation.

In pre-weekend trading, Dow Jones futures experienced a minor dip, floating around the 37,287-point mark.

Key levels impacting Dow Jones trajectory

The Dow Jones overcame resistance at 37,000 points, climbing to a new high of 37,641 points before pulling back to retest the 37,000 mark, now a significant support level.

Should the index drop below 37,000 points, it could signal further declines towards the 36,600 - 36,400 range.

Conversely, if the index holds above this support level and breaches the 37,400-point threshold, it may pave the way for more gains, possibly testing the 37,640 level. Surpassing this could set the stage for the index to reach a new historical high around 38,000 points.