Traders work on the floor of the New York Stock Exchange.
New York Stock Exchange
Stocks rose on Thursday, recovering from a mixed session following the release of upbeat U.S. economic data.
THE S&P 500 climbed 0.7%, hitting a new record, driven up by gains in Micron Technology. THE Nasdaq Composite Index increased by 1.2%. Dow Jones Industrial Average advanced by 250 points, or 0.6%.
Micron rose 18% after issuing strong guidance for the current quarter. Micron’s fiscal fourth-quarter results also beat analysts’ estimates. Fellow semiconductor stocks Applied Materials and Lam Research both rose 6%.
A slew of economic data supported a strong economy, easing concerns that the Federal Reserve could cut rates aggressively as the economy slows.
Weekly jobless claims fell more than expected, indicating a stable labor market. Durable goods orders for August were unchanged, contrary to economists’ expectations for a decline. And the final second-quarter GDP figure was unrevised, at a solid 3%.
“If there is a problem in the labor market, it’s not reflected in the weekly jobless claims numbers. But as is always the case, the monthly jobs report will play a larger role in shaping market sentiment,” said Chris Larkin, managing director of E-Trade trading and investments at Morgan Stanley. “But until proven otherwise, numbers like these will likely keep hopes alive for a soft landing.”
The S&P 500 and Dow Jones both fell Wednesday, taking a breather from their recent strong showings. Both indexes had hit new all-time highs earlier in the day. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, attributed some of Wednesday’s volatility to the upcoming presidential election.
