There's another reason why Wall Street had such a big day on Thursday besides some solid economic data. Investors are realizing we are in the middle of a massive, synchronized global central bank easing cycle and the Federal Reserve is about to join the party. In the past, such massive monetary easing has given a boost to equities, especially when they are not occurring during recessions.
Investors also cheered a fall in jobless claims on the week, with both reports serving as a much desired slate of favorable economic data following a weak nonfarm payrolls report earlier in August that helped sparked a sell-off. With the Fed set to cut rates next month, the market is anticipating it will get friendlier monetary policy, while keeping a strong economy.