In the US stock market on Thursday, The S&P 500 and Nasdaq Composite notched their fourth consecutive closing records. Closing figures for the day stood at 5,433.74 for the S&P 500, 38,647.10 for the Dow, and 17,667.56 for the Nasdaq, marking notable gains amid selective sector strength.
Despite retreats in the broader market, the Nasdaq and S&P 500 raced ahead to record closing highs. Image source: AI-generated image via DALL-E
Thursday saw a mixed performance among US equities, with major indices achieving fresh highs fueled by investor optimism over potential interest rate cuts and robust enthusiasm for artificial intelligence technology on Wall Street.
The S&P 500 and Nasdaq Composite notched their fourth consecutive closing records, driven by a buoyant tech sector. Despite broader market retreats, the S&P 500 eked out a 0.2 per cent gain, extending its streak of highs. The tech-rich Nasdaq rose 0.3 per cent, also hitting a new peak. Conversely, the Dow Jones Industrial Average slid 65 points or 0.2 per cent.
Closing figures for the day stood at 5,433.74 for the S&P 500, 38,647.10 for the Dow, and 17,667.56 for the Nasdaq, marking notable gains amid selective sector strength.
Momentum stocks
Shares of Dave & Buster’s Entertainment nosedived 10.9 per cent after disappointing quarterly results attributed to challenging economic conditions. The company cited macroeconomic complexities and consumer spending disparities amid persistent inflationary pressures.
However, firms entrenched in AI pursuits continued to capture attention and investor dollars. Broadcom surged 12.3 per cent following robust earnings that surpassed analysts’ expectations, underpinned by burgeoning AI demand. The semiconductor giant also revised its revenue forecast upward for the fiscal year.
Tesla shares saw a 2.9 per cent boost after the company’s CEO, Elon Musk, hinted at shareholder approval of his compensation package, a pivotal factor tied to his AI ventures. Meanwhile, Nvidia and Apple reflected the tech sector’s vigour, with gains of 3.5 per cent and 0.5 per cent, respectively.
Expectations of a rate cut
Market sentiment further pivoted on Federal Reserve expectations, despite a recalibration of its interest rate projections. Anticipation mounted for a potential rate cut as early as September, bolstered by market odds of a 60.5 per cent probability, according to CME’s FedWatch tool.
In summary, Thursday’s market narrative highlighted resilience in technology stocks amid broader economic uncertainties, coupled with evolving expectations around Federal Reserve policy shifts, all contributing to another milestone day on Wall Street.
With inputs from agencies
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