Written by Echo Wang
(Reuters) – Wall Street’s major indexes closed higher on Thursday, hitting a record high, as a rise in Micron Technology (NASDAQ:) shares and a strong U.S. jobless claims report eased concerns about the labor market.
Shares of Micron Technology rose after the memory chip maker forecast first-quarter revenue above expectations, highlighting strong demand for memory chips used in artificial intelligence computing.
The broader range increased with most chip stocks rising.
A series of strong US economic data has allayed fears that the Federal Reserve may cut interest rates aggressively to curb any slowdown.
Weekly unemployment claims fell more than expected, indicating a stabilizing labor market, while the final GDP reading confirmed that the economy grew by 3% in the second quarter.
“It (the GDP number) kind of reinforces the backdrop of strong economic growth that we’re seeing,” said Mike Dixon, head of research at Horizon Investments in Charlotte, North Carolina.
According to preliminary data, the Standard & Poor’s 500 index rose by 23.34 points, or 0.41%, to close at 5,745.60 points, while the Nasdaq Composite index gained 104.92 points, or 0.58%, to reach 18,187.12 points. The Dow Jones Industrial Average rose 255.23 points, or 0.61%, to 42,169.98 points.
Metal prices received a boost after China pledged to deploy “necessary fiscal spending.” Mining stocks such as Freeport-McMoRan (NYSE:) rose, while lithium miners including… Albemarle (NYSE:) and Arcadium Advanced.
“The story that is moving the market is definitely related to the Chinese stimulus and the announcement of support that the government is willing to provide to help boost consumer health there (and) reduce real estate pressures,” Dixon added.
But energy stocks fell, tracking the impact of crude prices, which fell due to expectations of increased supplies from the Organization of the Petroleum Exporting Countries. (or)
The index, which tracks small companies, outperformed the broader market.
The S&P 500 and the Dow Jones blue-chip index have hit several record highs this year, while the tech-heavy Nasdaq is about 2% shy of its own milestone. The market’s rallies were driven by optimism surrounding artificial intelligence and expectations of lower interest rates.
Late Wednesday, Fed Governor Adriana Kugler said she “strongly supports” the central bank’s decision to begin easing monetary policy last week.
CME Group’s (NASDAQ:) FedWatch tool showed that investors have been wavering between a 25 and 50 basis point cut since the Fed began its easing cycle, with bets favoring a deeper cut now, up from 38.8% a week ago.
US-listed Chinese companies such as Li Auto (O:), PDD Holdings (O:), and Alibaba (n:) acquired.
Wells Fargo shares rose after a report showed that the banking giant has sent the Federal Reserve a review of asset cap restrictions.
Southwest Airlines (NYSE:) rose after the carrier raised its third-quarter revenue forecast, while Accenture (NYSE:) rose after the IT services provider forecast annual revenue above estimates.
Comments are closed, but trackbacks and pingbacks are open.