Tech Stocks Propel Nasdaq 100 Higher; Micron and AI Optimism Drive US Indices

Stocks Rise as Economic Data Eases Fed Concerns

U.S. stocks advanced on Thursday, driven by upbeat economic data that eased fears of aggressive Federal Reserve rate cuts. Strong performances in key technology stocks, coupled with solid economic indicators, lifted overall market sentiment.

At 18:43 GMT, the Dow Jones Industrial Average is trading 42179.00, up 264.25 or +0.63%. The S&P 500 Index is at 5743.14, up 20.88 or +0.36% and the Nasdaq is trading 18178.24, up 96.04 or +0.53%.

Sector Performance

Semiconductors and materials sectors led market gains. The Philadelphia Semiconductor Index climbed 2%, benefiting from renewed demand for AI-related technology.

Materials stocks rose 1.9%, buoyed by a surge in metal prices after China announced fiscal stimulus measures. Copper miner Freeport-McMoRan soared 7.7%, while lithium producers Albemarle and Arcadium gained over 5%.

Conversely, energy stocks fell 1.7% as oil prices dropped amid expectations of increased OPEC supply.

Defensive sectors like utilities and real estate underperformed, with utilities down 0.54% and real estate off 0.86%.

Key Stock Movers

Micron Technology was the standout performer, surging 13% after delivering strong fourth-quarter results and issuing optimistic guidance for the next quarter. The company’s outlook, driven by strong demand for memory chips used in AI applications, boosted other semiconductor stocks, including Applied Materials and Lam Research, which gained 4% and 5%, respectively.

In contrast, Super Micro Computer fell 10% following news of a Justice Department investigation into potential accounting violations, compounding concerns after previous short-seller allegations.

Southwest Airlines also made significant moves, jumping 11% after raising its third-quarter revenue forecast and announcing a $2.5 billion share buyback program, which further boosted investor confidence.

Economic Data Supports Optimism

Weekly jobless claims dropped to a four-month low, signaling ongoing labor market strength. Durable goods orders remained unchanged in August, exceeding expectations for a decline, and second-quarter GDP growth held steady at 3%. These indicators reinforce the notion that the U.S. economy is resilient, boosting investor sentiment as the Federal Reserve manages its monetary policy stance.

Market Forecast

The strong performance of semiconductor stocks and encouraging economic data suggest a bullish outlook for the S&P 500 in the near term. However, next week’s employment report will play a critical role in shaping expectations for future Fed rate cuts. If labor market strength continues, the rally could extend, but any signs of weakness may introduce volatility. For now, market momentum remains positive.