Important points
The S&P 500 rose 0.4% on Thursday, Sept. 26, to a new all-time high on the back of strong second-quarter GDP growth. Micron Technology shares soared after the memory chip maker beat quarterly sales estimates due to strong AI demand. Super micro computers fell sharply following reports of a federal investigation into the company’s accounting practices.
Major U.S. stock indexes rose after the latest estimates from the U.S. Bureau of Economic Analysis showed that U.S. gross domestic product (GDP) growth was slightly higher than expected in the second quarter of 2024.
The S&P 500 rose 0.4% on Thursday, hitting a new closing high. The Dow rose 0.6%, ending just below the level of Tuesday’s record closing price. The Nasdaq also rose 0.6%, supported by a strong performance in the tech sector and solid gains in semiconductor stocks.
Micron Technology (MU) stock soared 14.7% as it secured the best performance on the S&P 500 index on Thursday after the memory chip maker beat earnings estimates and provided better-than-expected sales guidance for the current quarter. did. Nvidia (NVDA) Partners saw revenue nearly double year-over-year as strong artificial intelligence (AI) demand supported solid revenue growth. The company’s CEO said Micron’s competitive position has reached the highest point in the company’s history.
Circuit board maker Jabil (JBL) also reported strong quarterly results, exceeding fourth-quarter sales and profit estimates. Like Micron, Jabil also benefited from strong AI demand during the quarter. The electronics maker and Apple (AAPL) supplier approved a $1 billion share buyback plan and announced several cost-cutting initiatives. Jabiru stock rose 11.7% on Thursday.
Shares of beauty products company Estée Lauder (EL) rose 10.0% following the announcement of China’s economic stimulus package. The cosmetics maker derives about a third of its sales from the Asia-Pacific region. However, in its latest financial report, Estée Lauder pointed to a slump in China’s luxury beauty market as the main factor behind the 2% year-over-year decline in organic net sales. Improving consumer sentiment due to economic stimulus measures could lead to increased consumer spending, which could help Estée Lauder’s sales recovery in key markets.
Super Micro Computer (SMCI) stock plunged 12.2%, falling more than any other S&P 500 stock on Thursday. The US Department of Justice (DOJ) has launched an investigation into the accounting practices of server and data storage providers, according to a report in the Wall Street Journal. News of the Justice Department investigation follows a report released last month by Hindenburg Research, an activist short-seller, alleging that SuperMicro engaged in accounting manipulation.
Crude oil futures prices fell more than 3%, weighing on oil and gas inventories after reports that Saudi Arabia and other major oil producers were prepared to increase oil production in December. Diamondback Energy (FANG) stock fell 6.5% on news that insiders sold more than $2.3 billion in stock in the exploration and production company.
Weak natural gas prices also weighed on companies in the energy sector. Shares of natural gas companies Targa Resources (TRGP) and One Ok (OKE) fell about 5.9%.
