US benchmark equity indexes showed positive momentum during intraday trading as traders analyzed the latest macroeconomic data. The Dow Jones Industrial Average rose by 0.5% to reach 42,125.4 by midday on Thursday. In addition, both the S&P 500 and the Nasdaq Composite experienced increases of 0.1%, closing at 5,730.1 and 18,107.4, respectively.
Among various sectors, materials led the gains, while energy sectors experienced the most significant declines. In terms of economic performance, the US economy displayed solid growth, expanding at an annual rate of 3% in the second quarter, maintaining the previous projection according to a third estimate released by the Bureau of Economic Analysis.
This growth surpassed the consensus forecast of a 2.9% increase, based on a compilation by Bloomberg. For the first quarter, the real gross domestic product experienced a rise of 1.6%. “Domestic activity reflects a strong showing, at least in hindsight, necessitating a careful and patient approach to future rate reductions,” remarked Stifel in a note addressed to its clients. New data from the Census Bureau indicated that US durable goods orders unexpectedly remained steady in August, although shipments declined for the first time in three months.
“The durability of goods orders stalled in August. However, prior robust performance in aircraft shipments suggests that business investment is poised for recovery in the current quarter,” stated BMO Capital Markets. In the housing sector, pending home sales in the US witnessed an increase of 0.6% last month, as reported by the National Association of Realtors on Thursday.
“This slight upswing indicates a modest enhancement in housing affordability, largely due to mortgage rates that decreased to 6.5% in August,” explained NAR Chief Economist Lawrence Yun. “However, contract signings are still near cyclical lows, even as home prices continue to reach new record highs.” The weekly claims for unemployment insurance in the US saw a decline, according to government data, suggesting a potentially stable job market. The US yield on two-year bonds increased by 5.7 basis points to 3.61% during intraday trading, while the ten-year rate edged up by 1.3 basis points to 3.79%. On the commodities front, West Texas Intermediate crude oil experienced a decline of 3.1%, settling at $67.52 per barrel.
Reports from the Financial Times highlighted that Saudi Arabia is considering abandoning its unofficial $100-per-barrel crude price target as it prepares to ramp up production. Turning to corporate performance, shares of Micron Technology ($MU) surged by nearly 14%, marking it as the leading performer on both the S&P 500 and the Nasdaq.
The maker of memory and storage products reported a larger-than-anticipated profit for its fiscal fourth quarter, with increasing demand for artificial intelligence driving revenue past Wall Street’s expectations. Jabil ($JBL) projected an annual increase in earnings for fiscal 2025 after reporting better-than-expected results for the fourth quarter, leading to an 11% rise in its shares, making it the second-best S&P 500 performer. Conversely, Super Micro Computer ($SMCI) faced the largest drop among the S&P 500 and the Nasdaq, plummeting by 16%.
The Wall Street Journal reported that the company is currently under investigation by the US Department of Justice concerning allegations of accounting irregularities raised by a former employee. In upcoming corporate news, Costco Wholesale ($COST), Vail Resorts ($MTN), and BlackBerry ($BB.US) are scheduled to announce their latest quarterly financial results following Thursday's market close. From the commodities market, gold prices increased by 0.4% to $2,694.40 per troy ounce, while silver saw a rise of 1%, trading at $32.35 per ounce..