By Echo Wang
(Reuters) – Wall Street’s main indexes closed higher on Thursday, with a record score, as a rise in shares of Micron Technology (NASDAQ 🙂 and a strong U.S. jobless claims report eased concerns about the labor market.
Micron Technology shares rose after the memory chip maker projected better-than-expected first-quarter revenue, highlighting strong demand for memory chips used in artificial intelligence computing.
The broader price rose as most chip stocks rose.
A string of strong U.S. economic data eased concerns that the Federal Reserve may be aggressively cutting rates to stem any slowdown.
Weekly jobless claims fell more than expected, indicating a stable labor market, while the final gross domestic product reading confirmed that the economy grew 3% in the second quarter.
“(The GDP number) just reinforces that strong backdrop of economic growth that we’ve been seeing,” said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina.
According to preliminary data, the S&P 500 gained 23.34 points, or 0.41%, to finish at 5,745.60 points, while the Nasdaq Composite gained 104.92 points, or 0.58%, to 18,187.12 . The Dow Jones Industrial Average rose 255.23 points, or 0.61%, to 42,169.98.
Metal prices received a boost after China pledged to deploy “necessary fiscal spending.” Miners like Freeport-McMoRan (NYSE:) gained, while lithium miners including Albermarle (NYSE:) and Arcadium advanced.
“The story driving the market absolutely has to do with Chinese stimulus and the announcement of the support the government is willing to provide to help improve the health of consumers there (and) reduce housing pressures,” Dickson added.
However, energy stocks fell, following crude oil prices that fell on expectations of increased supply from the Organization of the Petroleum Exporting Countries. [O/R]
The index tracking small caps outperformed the broader market.
The benchmark S&P 500 and blue-chip Dow have hit multiple all-time highs this year, while the tech-heavy Nasdaq is about 2% below its own milestone. The market rallies have been driven by optimism around AI and expectations of lower interest rates.
Late Wednesday, Fed Governor Adriana Kugler said she “strongly supported” the central bank’s decision to begin easing monetary policy last week.
Investors have been oscillating between a 25 and 50 basis point cut since the Federal Reserve began its easing cycle, and bets favor a bigger cut now, up from 38.8% a week ago, the FedWatch tool showed of the CME Group (NASDAQ 🙂.
Chinese companies listed in the United States, such as Li Auto (O:), PDD Holdings (O:) and Alibaba (N:) cattle.
Wells Fargo shares rose after a report showed the banking giant had sent the Federal Reserve a review to lift restrictions on asset limits.
Southwest Airlines (NYSE 🙂 gained after the airline raised its third-quarter revenue forecast, while Accenture (NYSE 🙂 rose after the IT services provider forecast annual revenue above estimates.