Stock Market Today: S&P 500 Reaches Record Closing High Fueled by Micron Rally

The S&P 500 reached a new closing record on Thursday, driven by a surge in chip stocks led by Micron and positive economic data that boosted market sentiment.

As of 4:00 p.m. ET, the S&P 500 rose by 0.5%, closing at 5,743.73. The NASDAQ Composite saw a 0.6% increase, while the Dow Jones Industrial Average climbed by 280 points, or 0.7%.

Micron soars on impressive AI-driven earnings; Super Micro faces challenges; Southwest Airlines raises guidance

Micron experienced a nearly 15% jump, leading both chip stocks and the broader market higher after the memory chip manufacturer issued strong guidance for the current quarter following fiscal fourth-quarter results that surpassed Wall Street expectations. The company, one of the world’s largest memory chip producers, reported significant growth due to heightened demand for artificial intelligence, which has boosted sales of its high-bandwidth memory chips.

Conversely, Super Micro Computer Inc did not share in the positive momentum, as it saw its shares drop over 12% following reports of a Department of Justice investigation into the company.

Southwest Airlines’ stock increased by more than 5% after the airline raised its revenue-per-capacity guidance for the current quarter and announced a new $2.5 billion stock repurchase program.

Positive economic indicators enhance soft landing outlook

On the economic front, investors noted that durable goods orders unexpectedly rose in August, accompanied by a larger-than-expected decline in jobless claims. Jefferies reported that the final GDP data showed a 3.0% annualized gain in the last Q2 report, marking the largest increase in two quarters.

These favorable data releases came just ahead of the upcoming PCE price index data, the Federal Reserve’s preferred inflation measure, which is likely to influence future monetary policy decisions. Although Fed Chair Jerome Powell did not provide significant commentary on monetary policy, Treasury Secretary Janet Yellen indicated that the labor market suggests the economy is on track for a soft landing.

Chinese tech stocks rally as government promises new stimulus

Chinese tech stocks such as Alibaba Group, JD.com, and Baidu closed significantly higher, buoyed by China’s commitment to implement fiscal stimulus measures aimed at boosting the economy and achieving the nation’s approximately 5% growth target.