Wall Street Rallies on Micron Gains and Positive Job Data

Wall Street's indexes closed higher, with the S&P 500 hitting a record as Micron Technology shares surged. Positive U.S. jobless claims data and economic growth figures eased concerns about labor markets and monetary policy. Gains were broad-based, driven by AI optimism and expectations of lower interest rates.

Wall Street's main indexes closed higher on Thursday, with the S&P 500 hitting a record high. This surge was driven by a significant rise in Micron Technology shares and an encouraging U.S. jobless claims report, which helped ease concerns about the labor market. Micron Technology's stock soared after the memory chip maker projected first-quarter revenue exceeding expectations, highlighting the robust demand for memory chips in artificial intelligence computing.

The broader Philadelphia SE Semiconductor index also saw an increase as most chip stocks rallied. Positive U.S. economic data lessened worries about aggressive rate cuts by the Federal Reserve. Notably, weekly jobless claims fell more than expected, signaling a stable labor market, and the final reading of gross domestic product confirmed a 3% economic growth in the second quarter.

According to preliminary data, the S&P 500 gained 23.34 points, marking a 0.41% increase, ending at 5,745.60 points. The Nasdaq Composite gained 104.92 points to 18,187.12, and the Dow Jones Industrial Average rose by 255.23 points to 42,169.98. In addition to stock market gains, metal prices increased following China's pledge for fiscal spending. However, energy stocks declined due to expected higher crude supply from OPEC. Overall, market optimism was bolstered by positive AI developments and anticipation of lower interest rates.

(With inputs from agencies.)