U.S. stocks soared Thursday as the S&P 500 (^GSPC) closed at an all-time high. Investors welcomed a slew of updates, including solid U.S. economic data, upbeat earnings from Micron (MU) and China’s promise of more economic stimulus.
The Dow Jones Industrial Average (^DJI) rose 0.62% and the S&P 500 (^GSPC) rose another 0.4% to close at an all-time high of 5,745.39. The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.6% as Micron’s surge pushed other chips higher.
The U.S. government’s final report on second-quarter GDP growth beat Wall Street expectations, with weekly jobless claims unexpectedly hitting a four-month low.
Meanwhile, China’s top leaders signaled they are doing everything they can to revive the moribund economy, with new pledges to raise government spending, stem a real estate crisis and support the stock market. The CSI 300 (000300.SS) is expected to have its best week in 10 years due to a significant rise in mainland stocks.
Next Friday, there will be great expectations regarding the Persona Consumer Expenditures (PCE) Index, the Fed’s preferred inflation measure.
In terms of individual stock movements, the Super Micro Computer (SMCI) ) plunged 12%.
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
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Thursday, September 26, 2024 1:21 PM MST
Costco’s fourth-quarter profit exceeded, but revenue fell short
Costco (COST) stock fell slightly after the company reported mixed fourth-quarter results.
The company reported adjusted earnings per share of $5.29, beating Wall Street’s expectations of $5.08 per share. Meanwhile, Costco’s quarterly sales came in at $79.7 billion, slightly below The Street’s estimate of $79.96 billion.
Thursday, September 26, 2024 1:09 PM MST
New record for S&P500
The S&P 500 (^GSPC) closed at its 42nd all-time high on Thursday.
Major sectors in the S&P 500 index were Materials (XLB), which rose more than 2%, and Information Technology (XLK), which rose more than 1%.
Thursday, September 26, 2024 12:10pm MST
Micron’s profits boost chipmaker, AMD and Qualcomm’s stock prices rise
The US chip sector is feeling the glow after Micron’s (MU) earnings. The PHLX Semiconductor Index (^SOX) rose nearly 3.7% on Thursday.
Micron stock rose 15%. Other semiconductor stocks also rose. Advanced Micro Devices (AMD) rose 3.4%, Qualcomm (QCOM) rose 2.4% and Intel (INTC) rose 1.3%.
The surge was fueled by Micron’s fourth-quarter earnings report released after the bell on Wednesday, which included a brighter-than-expected outlook for the next quarter due to robust AI demand for the company’s memory chips. Ta. Micron was the first semiconductor maker to report quarterly results this fiscal year, and its positive report is a positive sign for the semiconductor sector.
Nvidia (NVDA) stock was relatively unchanged, rising just 0.16%. However, this slight increase was enough to propel the AI chipmaker back into the $3 trillion market cap club after a rocky start to the month. The company’s stock price fell sharply after it announced its second-quarter results in late August. Shares fell further following a Bloomberg report in early September that the U.S. Department of Justice had subpoenaed NVIDIA, which the company later denied.
Thursday, September 26, 2024 11:40 AM MST
Chinese stocks rise on hopes for further economic stimulus
China-linked U.S. stocks soared again on Thursday as the country’s top leaders pledged to support fiscal spending and support the struggling real estate sector.
The news was the second major announcement by Chinese officials about new stimulus this week.
The CraneShares CSI China Internet ETF (KWEB) rose more than 11% on Thursday, extending its five-day gain to more than 11%. Meanwhile, online retail giants Alibaba (BABA), Pinduoduo (PDD), and Jingdong (JD).com (JD) all rose more than 10% on the day.
Below is a look at how a basket of China-related US stocks performed this week.
Source: Yahoo Finance
Thursday, September 26, 2024 10:58 AM MST
30-year mortgage interest rates hit the lowest level in two years
The average interest rate on a 30-year fixed-rate mortgage fell slightly this week to a two-year low.
Yahoo Finance’s Claire Boston reports:
Thirty-year mortgage rates averaged 6.08% as of Thursday, down from 6.09% a week earlier, according to Freddie Mac data.
The average 2015 mortgage rate rose 1 basis point to 5.16%.
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Thursday, September 26, 2024 10:00 AM MST
The U.S. economy did not have two quarters of negative GDP in 2022
A number of amendments to gross domestic product (GDP) were announced on Thursday. And while the focus is primarily on recent data, the revisions date back several years and one in particular caught our eye.
The Bureau of Economic Analysis originally reported that the U.S. economy’s growth rate would decline at an annualized rate of 0.6% in the second quarter of 2022. This followed negative results in the first quarter, two negative factors that sparked recession discussions at the time. Quarterly GDP is often referenced as an indicator of economic recession.
But after several revisions were revealed on Thursday, it turned out that U.S. GDP had actually never been negative for two quarters. Revised GDP data showed the U.S. economy grew at an annualized rate of 0.6% in the second quarter of 2022.
This goes some way to explaining why one of the most widely anticipated recessions in history was never officially declared by the National Bureau of Economic Research. It’s also a reminder of why predicting recessions is so difficult, with even some of the most prominent recession indicator creators saying the best tool for such a practice will probably never exist, according to Yahoo told Finance.
Thursday, September 26, 2024 9:22am MST
S&P 500 poised for record close
Investors cheered a series of encouraging updates, including solid U.S. economic data, an upbeat earnings report from Micron (MU) and China’s promise of more stimulus, propelling benchmark indexes to close at Thursday’s all-time highs. are. Federal Reserve Chairman Jerome Powell is also scheduled to make a statement on Thursday, along with other Fed speakers.
The Dow Jones Industrial Average (^DJI) rose 0.6% and the S&P 500 (^GSPC) rose about 0.3% after both indexes retreated from their all-time highs in the previous session. The NASDAQ Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose nearly 0.3% due to the sharp rise in Micron stock.
Thursday, September 26, 2024 8:33 AM MST
Super micro stock tank 13% in Department of Justice investigation report
Super Micro Computer stocks plunged more than 13% and temporarily halted trading due to price fluctuations after the Wall Street Journal reported that the Justice Department was investigating the data center server maker. did.
The investigation comes after short seller Hindenburg Research released a report in August alleging “accounting manipulation” at the artificial intelligence high flyer.
Immediately after the news, the stock price fell by up to 17% and was suspended due to high volatility.
Thursday, September 26, 2024 8:16am MST
Meta stock briefly hits all-time highs as Wall Street bets on AI vision
Yahoo Finance’s Laura Bratton reports:
Meta stock (META) rose to an intraday high on Thursday following a developer event that showcased the company’s artificial intelligence ambitions.
The stock rose to $577 after the market opened, but was down 0.7%, or about $564, by mid-morning.
At Meta Connect 2024 on Wednesday, CEO Mark Zuckerberg announced Meta’s latest AI model, Llama 3.2.
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Thursday, September 26, 2024 at 8:00 AM MST
Target’s CEO hopes to eventually remove locked cases to combat theft at retail stores
Yahoo Finance’s Brooke DiPalma reports:
Target (TGT) is trying to address a long-standing problem in the retail industry: theft in its stores.
“I feel much better today than I did a year ago,” Target CEO Brian Cornell said in an interview with Yahoo Finance for its “Lead This Way” series. “It goes back to support at the federal level, state level and local level.”
Cornell commented on recent legislation, including state efforts in California that are “starting to crack down” on market abuse.
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Thursday, September 26, 2024 7:40am MST
Government shutdown averted for now, but two new spending battles loom
Yahoo Finance’s Ben Werschkul reports:
Congress avoided a shutdown and funded the government for three months, completing the final piece of pre-election legislation.
“I want to thank both the House and Senate for this bipartisan agreement and for avoiding a costly government shutdown,” President Joe Biden said in a statement.
But that reprieve won’t last long, and the plan will put lawmakers back in the middle of multiple spending battles when they return to Washington in November after voting for voters.
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Thursday, September 26, 2024 7:19am MST
Report shows 3% increase in oil tanks Saudi Arabia pledges to increase supply in December
More than 3% of crude oil is in storage on Thursday, after the Financial Times reported that Saudi Arabia is determined to begin lifting voluntary production cuts from December 1, even if it means lower oil prices. It was done.
On Thursday, West Texas Intermediate (CL=F) fell below $68 per barrel. The international benchmark price, Brent (BZ=F), also fell below $71 per barrel.
OPEC+ is delaying putting more barrels on the market to support price increases. The Saudi-led oil alliance is losing market share to the United States and other oil producers.
Last year, the United States produced record amounts of oil and natural gas.
Thursday, September 26, 2024 6:30 a.m. (MST)
Stock prices rise on strong economic growth data, semiconductor stocks also rise
U.S. stocks rose on Thursday, with the S&P 500 index (^GSPC) hitting a new intraday high and the chip sector rising on the release of better-than-expected GDP statistics and strong results from Micron (MU).
The Dow Jones Industrial Average (^DJI) rose 0.5% and the S&P 500 rose 0.7%. The tech-heavy Nasdaq Composite Index (^IXIC) led the market’s gains, rising 1.2% on the strength of Micron’s stock.
Micron’s results contributed to gains in the chip sector, including AI giant Nvidia (NVDA), which rose more than 2% in early trading.
U.S. gross domestic product (GDP) rose 3% in the second quarter from a year earlier, the latest economic data showed, faster than Wall Street expected.
Thursday, September 26, 2024 5:40am MST
New economic indicators are announced that exceed expectations
The U.S. economy grew at an annualized rate of 3% in the second quarter, faster than Wall Street expected.
The U.S. Bureau of Economic Analysis’s third estimate of U.S. gross domestic product (GDP) for the second quarter was unchanged from the second estimate, which showed annual growth of 3%. Economists had estimated this figure to represent annual growth of 2.9%. The third estimate of second-quarter GDP confirmed that the economic growth rate was higher than the annual rate of 1.4% in the first quarter.
Separately, U.S. Labor Department data released Thursday showed 218,000 jobless claims were filed in the week ending Sept. 21, down from Wall Street expectations of 223,000. It went below. This is the lowest weekly number of applications since mid-May.
August durable goods orders also reported Thursday were flat, better than the 2.6% decline Wall Street had expected.
