Stocks extended their push to record highs Thursday on Wall Street, led by big gains in chipmakers. The S&P 500 rose 0.6% in morning trading Thursday, following up on hitting a record high for a second straight day. More than 80% of stocks in the index gained ground.
Quick Read
- Stock Market Rally: The S&P 500 experienced a 0.6% increase in morning trading, continuing its streak of record highs, with over 80% of stocks in the index advancing.
- Dow Jones and Nasdaq Performance: The Dow Jones Industrial Average rose by 266 points (0.7%), and the Nasdaq composite increased by 0.7%, both also coming off record highs.
- Chipmakers Lead Gains: Micron saw a significant surge of 14% following impressive quarterly results, while Broadcom’s strong earnings led to a 5.7% jump in its stock price.
- Retailers Facing Challenges: Designer Brands and Five Below faced declines of 14.9% and 12.2% respectively, due to disappointing financial forecasts. Darden Restaurants also dropped 6.1% after revising its revenue forecast downward.
- Reddit’s Trading Debut: Market participants are closely monitoring Reddit as its shares start trading.
- Federal Reserve’s Rate Cut Outlook: Steady Treasury yields reflect the market’s response to the Federal Reserve’s indication of three potential rate cuts this year, calming concerns about inflation and fueling optimism for easing economic conditions.
- Interest Rate Expectations: Wall Street is anticipating the Federal Reserve to initiate rate cuts starting in its June meeting, aiming to stimulate economic growth and alleviate investment price pressures.
- Global Market Movements: European and Asian markets showed positive trends, with China announcing new economic support measures.
- Interest Rate Adjustments: The Swiss National Bank announced a rate cut, distinguishing Switzerland as the first major financial hub to do so recently, while the Bank of England maintained its rate, choosing not to signal any imminent cuts despite a significant drop in inflation.
The Associated Press has the story:
Wall Street extends its push into record highs, led by chipmakers
Newslooks- NEW YORK (AP) —
Stocks extended their push to record highs Thursday on Wall Street, led by big gains in chipmakers. The S&P 500 rose 0.6% in morning trading Thursday, following up on hitting a record high for a second straight day. More than 80% of stocks in the index gained ground.
The Dow Jones Industrial Average rose 266 points, or 0.7%. The Nasdaq composite rose 0.7%. Both indexes are also coming off of record high.
Micron surged 14% and led chipmakers higher after reporting blowout results for its latest quarter that easily surpassed analysts’ expectations. Chipmaker Broadcom jumped 5.7% after reporting strong earnings.
On the losing end, a few retailers slipped following disappointing financial updates. Footwear retailer Designer Brands slumped 14.9% and discount retailer Five Below fell 12.2% after their financial forecasts fell short of Wall Street expectations.
Olive Garden owner Darden Restaurants fell 6.1% after cutting its revenue forecast for the year.
Traders will be keeping a close eye on Reddit, whose shares begin trading today.
Treasury yields were mostly steady a day after the Federal Reserve said it still expects to make three rate cuts this year. That helped calm some nerves on Wall Street, which has been rallying to records on expectations for interest rate cuts, but has recently been concerned about hotter-than-expected inflation updates.
Lower interest rates would ease conditions for economic growth and take pressure off of prices for investments. Wall Street expects the Fed to start cutting rates at its meeting in June.
Markets in Europe and Asia gained ground.
The Chinese government announced fresh measures to support its economy.
The Swiss National Bank said it is trimming its key interest rate, a surprise move that makes Switzerland the first major financial center to announce a cut in recent months. The Bank of England kept its main interest rate unchanged at a 16-year high and avoided signaling when it might start to cut even though inflation has dropped sharply.
