US stocks: S&P 500 notches record-high close as rate-hike worries ease
The S&P 500 has hit a historic peak, largely influenced by a surge in technology stocks. With producer price inflation showing stability, expectations of a Federal Reserve rate hike have diminished. Memory chip giants Sandisk and Micron Technology reported impressive increases in their stock prices, alongside positive movements for other major firms like Broadcom and Meta Platforms.
The S&P 500 achieved a record-high close on Thursday, buoyed by gains in tech giants Sandisk and Micron Technology, as data indicating low producer price inflation eased concerns about an imminent interest rate hike from the Federal Reserve. Memory chip manufacturers Sandisk and Micron Technology experienced significant surges, alongside increases in Broadcom and Meta Platforms.
Recent strong earnings forecasts from companies like Microsoft and Amazon had previously eased investor apprehensions about substantial investments in AI data centers. Jay Hatfield, CEO of Infrastructure Capital Advisors in New York, emphasized that this surge is an earnings boom, not a bubble. The S&P 500 rose by 51.23 points, or 0.66%, to 7,799.73 points, while the Nasdaq Composite gained 215.02 points, or 0.81%, to 26,803.51.
The Dow Jones Industrial Average increased by 70.91 points, or 0.13%, to 53,833.87. On a quarterly basis, the S&P 500 has gained approximately 14%, and the Nasdaq has gained about 15%. Cisco Systems suffered a decline after its revenue forecast fell short of investor expectations, despite being upbeat. Meanwhile, tensions between Iran and the United States persisted over the Iran war, with the Strait of Hormuz continuing to experience restricted traffic.
The United States reported unchanged producer prices in July, as falling goods prices balanced marginal service cost increases. Additionally, unemployment benefit claims rose moderately, indicating a stable job market. Traders estimated a 63% probability that the Fed would maintain interest rates unchanged during its September meeting, according to CME's FedWatch tool.
Oil prices saw a 2% decrease, settling at $87.07 per barrel. Meanwhile, Netflix gained after billionaire investor Bill Ackman announced a new investment in the streaming service, marking Pershing Square's biggest portfolio overhaul in years. Conversely, shares of Tapestry fell following its forecast of sluggish annual revenue growth.
Dell Technologies and HP both reported gains following Lenovo's China branch exceeding expectations.
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