Stock market today: Wall Street ticks to another record as stocks worldwide rally
AP Business Writer
NEW YORK (AP) — U.S. stocks rose to another record Thursday as financial markets around the world rallied again.
The S&P 500 added 0.4% to set an all-time high for the third time this week and the 42nd time this year. The Dow Jones Industrial Average gained 260 points, or 0.6%, to finish just shy of its record, while the Nasdaq composite rose 0.6%.
Micron Technology led the way with a jump of 14.7% after the maker of computer memory and storage products delivered stronger profit for the latest quarter than analysts expected. It benefited from sales related to artificial-intelligence technology, where a boom has helped drive some stocks to astounding heights.
Jabil climbed 11.7% after the electronics manufacturer likewise reported stronger profit and revenue than expected. It also announced a plan to plow cash to its shareholders by buying back up to $1 billion of its stock.
But drops for Exxon Mobil and other oil-and-gas companies kept the market’s gains in check. Oil prices sank after The Financial Times reported through sources that Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude.
The price of a barrel of benchmark U.S. crude fell 2.9% to settle at $67.67, while the international standard of Brent crude fell 2.5% to $71.60. That dragged Exxon Mobil’s stock down 1.7%, and it was one of the heaviest weights on the S&P 500. ConocoPhillips sank 3.2%.
The biggest drop in the S&P 500 hit Super Micro Computer, which gave back some of its huge gains after more than tripling last year amid the AI frenzy. Its stock tumbled 12.2% following a report from The Wall Street Journal saying the U.S. Department of Justice is probing the seller of servers and storage systems. The company declined to comment.
A prominent investor, Hindenburg Research, published a report in August that accused the company of accounting red flags and other issues, which CEO Charles Liang later said contained false or inaccurate statements.
All told, the S&P 500 rose 23.11 points to 5,745.37. The Dow rose 260.36 to 42,175.11, and the Nasdaq composite gained 108.09 to 18,190.29.
In stock markets overseas, indexes were more buoyant on hopes for more moves by China to prop up the world’s second-largest economy. The country’s powerful Politburo on Thursday called for intensified efforts as China tries to meet its goals for economic growth, according to the official Xinhua News Agency.
That follows a raft of announcements earlier in the week by the country’s central bank that had also sent global markets jumping. China’s economic growth has been flagging, and officials appear to be making a more coordinated effort following earlier piecemeal attempts to boost it.
In the United States, meanwhile, more encouraging news came after a round of reports on Thursday suggested the world’s largest economy may be doing better than expected.
Fewer U.S. workers applied for unemployment benefits last week in the latest signal that layoffs remain relatively low across the economy. A separate report said the overall U.S. economy grew at a 3% annual rate during the spring, as previously estimated. That’s a solid rate.
The hope on Wall Street is for a form of financial nirvana where the U.S. economy’s growth can hold steady and keep profits for companies humming while the Federal Reserve continues to lower interest rates.
The Fed last week made a drastic turn in how it sets interest rates. It’s now cutting them to make things easier for the U.S. economy after keeping rates high for years in hopes of extinguishing high inflation. Lower rates not only make it less expensive to borrow money to buy a house, a car or things on credit cards, they can also boost prices for all kinds of investments.
The fear is that the job market could weaken further as the cumulative effects of all the Fed’s past hikes to interest rates show themselves. The Fed had earlier kept its main interest rate at a two-decade high for more than a year, and U.S. employers have already begun to slow their hiring.
Many traders on Wall Street are betting the Fed will end up cutting interest rates more deeply this year than officials have indicated. But if economic reports remain strong and keep topping expectations, the Fed may not end up cutting as much as investors are betting. That could make the U.S. stock market, which critics say already looks too expensive, look even pricier.
In the bond market, the yield on the 10-year Treasury remained at 3.79%, where it was late Wednesday. The two-year yield, which more closely follows expectations for what the Federal Reserve will do with short-term interest rates, rose to 3.62% from 3.56%.
In stock markets abroad, jumps of 4.2% in Hong Kong and 3.6% in Shanghai led the way. Indexes also climbed 2.8% in Japan, 2.3% in France and 1.7% in Germany.
South Korean stocks jumped 2.9%, led by semiconductor maker SK Hynix, which launched production of a new memory chip for artificial intelligence.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
