Wall Street Soars as Dow Hits Record High Amid Strong U.S. Economic Data

Wall Street stocks increased and the Dow reached a record high following robust U.S. economic data. Despite Nvidia's revenue forecast disappointment, other AI-related stocks saw gains. The U.S. economy grew faster than expected, suggesting a potential soft landing. Advancing issues outnumbered falling ones within S&P 500 indexes.

Wall Street stocks surged, with the Dow Jones industrial average achieving a record high on Thursday, buoyed by strong U.S. economic data. However, Nvidia slipped after presenting a forecast that failed to meet high investor expectations.

U.S. economic growth outpaced initial estimates, driven by substantial consumer spending, according to the Commerce Department. This growth supports the prediction that the country may dodge a recession. "Downward revisions to inflation alongside increased spending fortify the soft landing narrative," noted Jeffrey Roach, chief economist at LPL Financial.

Nvidia's revenue forecast led to a 3.2% dip in its stock, reducing its 2024 gains to 144%. Conversely, other AI-linked stocks like Microsoft and Alphabet posted gains of 1.9% and nearly 1%, respectively. Broadcom and Advanced Micro Devices also saw approximately 1% increases. The broader sentiment around AI stocks remains positive, with Terry Sandven of U.S. Bank Wealth Management highlighting the ongoing potential in the AI sector.

The Dow Jones climbed by 1.10%, while the S&P 500 increased by 0.76% to 5,634.92 points, just shy of its July record. The Nasdaq Composite Index rose 0.93% to 17,718.61 points. Among the 11 S&P 500 sector indexes, nine saw rises, led by energy and industrial sectors.

Data from the Labor Department indicated slightly lower-than-anticipated jobless claims. Investors are now turning their attention to the June Personal Consumption Expenditures report, expected to provide more insights into future monetary policy.

Cybersecurity firm CrowdStrike's stock surged by 5.3% after exceeding revenue estimates, while Dollar General faced a 30% slump after revising down its annual sales and profit projections. Overall, four times as many S&P 500 stocks advanced as those that declined.

The S&P 500 marked 64 new highs versus four new lows; the Nasdaq saw 81 new highs and 76 new lows.

(With inputs from agencies.)