Stocks rose Thursday, with the S&P 500 hitting a new record, following the release of upbeat U.S. economic data.
The broad market index climbed 0.40% to 5,745.37. The index posted a new all-time high during the session and a record close, lifted by gains in Micron Technology. The Nasdaq Composite added 0.60%, closing at 18,190.29. The Dow Jones Industrial Average advanced 260.36 points, or 0.62%, to end at 42,175.11.
Micron closed 14.7% higher after issuing strong guidance for the current quarter. Results for Micron’s fiscal fourth quarter also topped analysts’ estimates. The VanEck Semiconductor ETF (SMH) added 2.9%.
A slate of fresh data supported a solid economy, easing fears that perhaps the Federal Reserve is cutting rates aggressively because of a potential slowdown.
Weekly jobless claims fell more than expected, pointing to a steady labor market. Durable goods orders for August were unchanged versus economists’ expectations for a decline. Further, the final reading of second-quarter GDP was unrevised at a strong 3%.
“If there’s a problem in the labor market, it’s not showing up in the weekly jobless claims data. As is always the case, though, the monthly jobs report will play a bigger role in defining market sentiment,” said Chris Larkin, managing director of trading and investing for E-Trade from Morgan Stanley. “But until there’s evidence to the contrary, numbers like this will likely keep soft-landing hopes alive and well.”
Both the S&P 500 and the Dow fell Wednesday, taking a breather from their recent strong runs. Both indexes had hit fresh all-time highs earlier in the day.
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