Markets eye inflation data as Fed rate cut bets climb past 85 percent in September
On Thursday, technology stocks drove Wall Street to record highs and extended a rally shaping global markets, reported BNN Bloomberg.
The S&P 500 rose 0.3 percent to 6,501.86, notching its second straight record.
The Dow Jones Industrial Average added 71.67 points, or 0.16 percent, to 45,636.90, while the Nasdaq Composite climbed 0.53 percent to 21,705.16, finishing near its all-time high.
Much of the momentum came from the technology and communication services sectors.
As per BNN Bloomberg, Broadcom advanced 2.8 percent, Amazon gained 1.1 percent, and Alphabet rose 2 percent.
Micron Technology increased 3.6 percent, while Snowflake surged 20 percent after posting quarterly results above expectations.
Nvidia slipped 0.8 percent despite reporting revenue growth of 56 percent and earnings that exceeded forecasts.
CNBC reported the company projected revenue of US$54bn for the current quarter, slightly above analyst estimates of US$53.1bn.
Analysts from JPMorgan, Citi, and Bernstein raised their price targets, while Globalt Investments’ Thomas Martin said Nvidia “is the stock to own” and remains the central play in the AI trade.
Other corporate updates added volatility.
Best Buy dropped 3.7 percent, Urban Outfitters declined 10.7 percent, Dick’s Sporting Goods fell 4.8 percent, and Victoria’s Secret slipped 0.5 percent following their earnings announcements.
Burlington Stores climbed 5.3 percent after topping forecasts, while Hormel fell 13.1 percent, the steepest loss on the S&P 500, after missing earnings and cutting its outlook.
Economic data provided further support for equities.
The US Commerce Department reported that GDP expanded at a 3.3 percent annual rate in the second quarter, rebounding from a 0.5 percent contraction in the first quarter.
The US Labour Department noted a drop in jobless claims, though hiring has slowed since spring.
Bill Northey, senior investment director at US Bank Asset Management, said sectors tied to the current capital expenditure cycle — particularly technology and communication services — remain the leading beneficiaries.
Looking ahead, markets are awaiting Friday’s release of the personal consumption expenditures index. Economists surveyed by Dow Jones expect a 2.6 percent year-over-year increase in July.
Bloomberg noted traders are assigning an 85.3 percent probability that the Federal Reserve will cut interest rates by 0.25 percentage points in September, based on CME Group data.
In the bond market, the 10-year Treasury yield edged down to 4.21 percent, while the 2-year yield rose to 3.63 percent.
European and Asian markets closed mixed.
