The U.S. stock market continued its upward trajectory on Thursday, reaching new record highs fueled by significant gains in chipmakers. The Standard & Poor’s 500 index climbed to 5,241.53 points, marking its third consecutive day of all-time highs, with three out of four stocks in the index experiencing gains. The Dow Jones industrial average also saw a notable increase, rising by 269.24 points to reach 39,781.37 points, while the Nasdaq composite rose by 32.43 points to 16,401.84 points, building upon records set the previous day.
Micron, a leading chipmaker, surged by 14.1% following stronger-than-expected quarterly results and an optimistic profit forecast for the current quarter, driven by the increasing demand for artificial intelligence technology. Chipmaker Broadcom also experienced a significant 5.6% increase, further contributing to the S&P 500’s gains, fueled by its investor presentation emphasizing opportunities in AI.
Reddit, a popular online community platform, made a remarkable debut on the stock market, surging by 48.4% on its first day of trading. However, these gains were offset by a 4.1% decline in Apple’s stock after the U.S. Justice Department announced a major antitrust lawsuit against the tech giant, accusing it of monopolistic practices in the smartphone industry.
Other notable market movements included a 9.3% drop in Accenture’s stock despite reporting stronger-than-expected quarterly profits, as its full-year profit forecast fell short of estimates. Darden Restaurants, the owner of Olive Garden, also experienced a 6.5% decline in its stock after its revenue forecast for the fiscal year fell below analysts’ expectations.
In the bond market, Treasury yields remained mostly steady following the Federal Reserve’s announcement of its intention to make three rate cuts this year, calming concerns about the potential impact of higher-than-expected inflation. Reports indicating better-than-expected economic performance, including a resilient job market and unexpected growth in manufacturing activity, also contributed to market stability.
Looking ahead, investors anticipate the release of personal consumption and expenditures data for February, which serves as the Fed’s preferred measure of inflation. Meanwhile, global markets, including those in Europe and Asia, mostly experienced gains, with the Chinese government announcing measures to support its economy and the Swiss National Bank making a surprise decision to trim its key interest rate.