Agencies
New York
The Nasdaq rose on Thursday while other indexes were flat to slightly higher, as a dip in Treasury yields after a string of economic data boosted megacap stocks.
Data showed new orders for key US-manufactured capital goods unexpectedly fell in May, while core durable goods orders fell 0.1 percent versus forecasts for a 0.2 percent rise, boosting hopes that a weaker economy could prompt the Federal Reserve to cut interest rates in September.
Weekly jobless claims fell to 233,000, missing expectations of 236,000. Further, a final print showed the US economic growth increased more than estimated in the firstquarter.
Megacap stocks firmed as Treasury yields slipped after the data, with Amazon.com rising 0.9 percent after hitting $2 trillion in market value for the first time on Wednesday.
Consumer servicesled gains with a 0.8 percent rise, led by gains in Meta Platforms and Netflix, while financial stocks were the biggest drag on the Dow and the biggest S&P 500 sectoral decliner.
Meanwhile, Micron slipped 5 percent after an in-line fourth-quarter revenue forecast disappointed investors hoping for more upside from the memory chipmaker’s performance in the artificial intelligence boom.
With a handful of expensive heavily weighted stocks supporting Wall Street’s ascent since the last leg of 2023, market participants have highlighted concerns over the rally’s sustainability and have called out for the need to diversify portfolios to hedge against possible sharp losses.
“It’s really a question of whether corporate earnings in the tech sector can remain resilient. If they can’t, then we will see probably intermittent profit-taking and small corrections,” said Mike Gallagher, director of research at Continuum Economics.
“It’s going to be a bit difficult for the tech sector to drive on the market the way that it’s done.”
Walgreens Boots Alliance slumped 23.8 percent after cutting its 2024 profit forecast and announcing plans to close more underperforming US stores. Nvidia fell 1.7 percent in another day of choppy trading for the AI-trade favorite.
Thursday’s data comes ahead of Friday’s release of the monthly personal consumption expenditures (PCE) price index - the Federal Reserve’s preferred inflation gauge.
Meanwhile, investors have largely stuck to their view of around two interest rate cuts this year, as per LSEG’s FedWatch data, even though the US central bank has projected only one, and a nearly 66 percent chance of a cut in September.
President Joe Biden and former President Donald Trump are set to face each other in the first debate during the day.
At 9:59 am ET, the Dow Jones Industrial Average was up 12.72 points, or 0.03 percent, at 39,140.52, the S&P 500 was up 3.58 points, or 0.07 percent, at 5,481.48, and the Nasdaq Composite was up 39.06 points, or 0.22 percent, at 17,844.21.
Denim maker Levi Strauss slumped 16.7 percent after falling short of expectations for second-quarter revenue. International Paper dropped 10.4 percent after the world’s largest pulp manufacturer, Brazil’s Suzano terminated talks to buy the US-based firm.
The S&P index recorded eight new 52-week highs and two new lows, while the Nasdaq recorded 23 new highs and 58 new lows.
