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Wall Street’s main indexes rose in choppy trading on Thursday, with the S&P 500 hitting an intraday record high after Micron’s upbeat forecast rekindled the hype around artificial intelligence, and a soft jobless claims report soothed worries about the labourmarket.
Micron Technology jumped 12.9 percent after the memory chip maker forecast higher-than-expected first-quarter revenue, underscoring that demand for memory chips used in AI computing was robust.
Most chip stocks traded up, sending the broader Philadelphia SE Semiconductor index tab 2 percent higher.
Investors also scrutinised a Labor Department report that showed jobless claims dropped to a four-month low last week, while the final reading of gross domestic product confirmed that the economy grew 3 percent in the second quarter.
"If there’s a problem in the labor market, it’s not showing up in the weekly jobless claims data. Numbers like this will likely keep soft-landing hopes alive and well,” said Chris Larkin, managing director of trading and investing at E*TRADE.
At 11:46 am the Dow Jones Industrial Average rose 231.95 points, or 0.55 percent, to 42,143.85 points, the S&P 500 gained 19.59 points, or 0.34 percent, to 5,741.85 and the Nasdaq Composite gained 84.67 points, or 0.47 percent, to 18,166.88.
Metal prices got a boost after China pledged to deploy, opens new tab”necessary fiscal spending”. Copper miners such as Freeport-McMoRan rose 7.7 percent, while lithium miners such as Albemarle climbed 7 percent and Arcadium added 5.6 percent.
However, energy stocks slipped 1.7 percent, tracking crude prices that slid on expectations of greater supply by the OPEC.
The Russell 2000 index tracking small caps outperformed the broader market with a 0.8 percent gain.
The benchmark S&P 500 and blue-chip Dow have hit multiple record highs this year and the tech-laden Nasdaq is about 2 percent away from its own milestone. Optimism around AI and expectations of lower interest rates have led markets to rally this year.
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 a 50 bps cut since the Fed commenced its easing cycle, with bets favouring a bigger cut now, up from 38.8 percent a week ago, as per the CME Group’s FedWatch Tool.
"The employment situation report next week is going to help really settle the debate about whether the November Fed meeting will be a 25 or 50 basis point cut,” said Brian Jacobson, chief economist at Annex Wealth Management.
Among others, US-listed Chinese firms such as Li Auto gained 7.1 percent, PDD Holdings advanced 11.7 percent, while Alibaba added 9.5 percent.
Wells Fargo gained 4.5 percent after a report showed the banking giant had sent the Fed a review for lifting asset cap restrictions.
Southwest Airlines climbed 10.7 percent after the carrier raised its third-quarter revenue forecast, while Accenture gained 4.5 percent after the IT services provider forecast annual revenue above estimates.
Advancing issues outnumbered decliners by a 2.41-to-1 ratio on the NYSE and by a 2.34-to-1 ratio on the Nasdaq. The S&P 500 posted 47 new 52-week highs and two new lows, while the Nasdaq Composite recorded 77 new highs and 68 new lows.