U.S. equity indexes experienced notable gains, driven primarily by the basic materials and technology sectors. This uptick follows China's announcement of anticipated fiscal stimulus measures, coupled with strong fiscal Q4 results from Micron Technology, which significantly bolstered the artificial intelligence trade.
The S&P 500 increased by 0.3%, reaching a new peak of 5,742.1, after briefly hitting an intraday record high of 5,767.37. The Dow Jones Industrial Average rose 0.6% to 42,183.3, while the Nasdaq Composite also advanced by 0.6% to land at 18,192.7. Notably, most sectors traded positively, although energy and real estate sectors lagged behind, showing declines.
In a significant announcement from Beijing, China’s Politburo promised the necessary fiscal spending to achieve its annual GDP growth target of 5%, which is crucial for supporting struggling property markets. This commitment came on the heels of relaxing monetary policies initiated by the People's Bank of China, resulting in the Hang Seng Mainland Property Index soaring nearly 17% in Hong Kong.
Additionally, copper prices surged by 2.8%, marking a robust trading performance. As the second-largest economy worldwide, China remains one of the United States' key trading partners. During trading, several companies in the basic materials sector demonstrated substantial gains. Alcoa, known for aluminum production, Southern Copper, and Albemarle, a prominent player in specialty chemicals, all achieved intraday gains exceeding 8%.
Turning to corporate developments, Micron Technology reported a broader-than-expected profit for its fiscal Q4, driven by increasing demand for artificial intelligence products. This surge propelled revenue past Wall Street’s forecasts, resulting in a remarkable 13% increase in the chipmaker's share price on an intraday basis, making it the standout performer of the S&P 500 and Nasdaq indexes.
From an economic standpoint, U.S. initial jobless claims saw a decline to 218,000 for the week ending September 21, down from a revised figure of 222,000 the previous week. Analysts had initially projected an increase to 223,000. Meanwhile, the four-week moving average experienced a drop of 3,500, settling at 224,750.
In the treasury markets, most U.S. Treasury yields rose, with the 10-year yield increasing by 2.5 basis points to 3.8%, while the two-year rate climbed 5.5 basis points to 3.61%. On the commodity front, West Texas Intermediate crude oil fell 2.1%, settling at $68.25 per barrel. Investors are encouraged to stay informed as these developments unfold, impacting both the markets and the broader economy..