By Echo Wang
(Reuters) – Wall Street’s main indexes ended higher on Thursday, with the scoring a record high, as a surge in Micron Technology (NASDAQ:) shares and a solid U.S. jobless claims report eased concerns about the labor market.
Shares of Micron Technology rose after the memory chip maker projected first-quarter revenue above expectations, highlighting strong demand for memory chips used in artificial intelligence computing.
The broader increased as most chip stocks rallied.
A string of robust U.S. economic data eased concerns that the Federal Reserve may be cutting rates aggressively to curb any slowdown.
Weekly jobless claims fell more than anticipated, signaling a steady labor market, while the final reading of gross domestic product confirmed that the economy grew 3% in the second quarter.
“It (the GDP number) just kind of reinforces that strong economic growth backdrop that we have 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 end 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 got a boost after China pledged to deploy “necessary fiscal spending.” miners such as Freeport-McMoRan (NYSE:) gained, while lithium miners including Albemarle (NYSE:) and Arcadium advanced.
“The story driving the market absolutely has to do with the Chinese stimulus and the announcement of the support that the government’s willing to provide to help just boost consumer health there (and) reduce real estate pressures,” Dickson added.
However, energy stocks slipped, tracking crude prices that slid on expectations of greater supply by 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 record highs this year, while the tech-heavy Nasdaq is about 2% shy of its own milestone. Market rallies have been driven by optimism surrounding AI and expectations of lower interest rates.
Late on Wednesday, Fed Governor Adriana Kugler said she “strongly supported” the central bank’s decision to kick off monetary policy easing last week.
Investors have been swaying between a 25- and 50-basis point cut since the Fed commenced its easing cycle, with bets favoring a bigger cut now, up from 38.8% a week ago, the CME Group’s (NASDAQ:) FedWatch Tool showed.
U.S.-listed Chinese firms such as Li Auto (O:), PDD Holdings (O:) and Alibaba (N:) gained.
Shares of Wells Fargo rose after a report showed the banking giant had sent the Fed a review for lifting asset cap restrictions.
Southwest Airlines (NYSE:) gained after the carrier raised its third-quarter revenue forecast, while Accenture (NYSE:) rose after the IT services provider forecast annual revenue above estimates.
