The S&P 500 closed at its all-time high Thursday as traders parsed the latest set of macro data, including a fresh reading on second-quarter economic growth. The S&P 500 rose 0.4% to 5,745.4. The Dow Jones Industrial Average and the Nasdaq Composite advanced 0.6% each to 42,175.1 and 18,190.3, respectively.
Materials led the gainers among sectors, while energy saw the steepest decline. In economic news, US real gross domestic product increased at a 3% annualized rate in the June quarter, unchanged from a previously projected pace, according to a third estimate by the Bureau of Economic Analysis. The consensus was for a 2.9% reading in a survey compiled by Bloomberg.
First-quarter real GDP growth was revised to 1.6% from 1.4%. "A solid showing, at least in the rear-view mirror, of domestic activity reinforces the need for a tempered and patient approach to subsequent Federal Reserve rate reductions," Stifel said in a note to clients. US durable goods orders unexpectedly held steady in August, while shipments dropped for the first time in three months, according to Census Bureau data. "Durable goods orders stalled in August, but earlier strength in aircraft shipments will see business investment take flight again in the current quarter," BMO Capital Markets said. Pending home sales in the US rose less than expected last month as contract signings remained near cyclical lows, the National Association of Realtors said. Manufacturing activity in the US Midwest region slid more than expected into a deeper contraction this month as production swung back into negative territory, the Kansas City Fed said. Weekly applications for unemployment insurance in the US unexpectedly declined, government data showed. The US two-year yield rose 7.2 basis points to 3.63%, while the 10-year rate added 1.5 basis points to 3.8%. West Texas Intermediate crude oil declined 3.2% to $67.48 a barrel.
Saudi Arabia is prepared to abandon its unofficial $100-per-barrel crude price target as it prepares to boost production, the Financial Times reported, citing people familiar with the country's thinking. In company news, Micron Technology shares jumped nearly 15%, the top performer on the S&P 500 and the Nasdaq.
Late Wednesday, the memory and storage product maker swung to a bigger-than-expected profit for its fiscal fourth quarter as mounting demand for artificial intelligence propelled revenue above Wall Street's estimates. Jabil on Thursday forecast an annual increase in fiscal 2025 earnings after reporting higher-than-expected fourth-quarter results.
The manufacturing solutions provider's shares surged 12%, the second-best S&P 500 performer. Super Micro Computer saw the biggest drop on the S&P 500 and the Nasdaq, down 12%. The Wall Street Journal reported that the company is being probed by the US Department of Justice over accusations of accounting violations made by a former employee. Gold rose 0.4% to $2,694.80 per troy ounce, while silver gained 1% to $32.33 per ounce..