Highlights
Stocks were mostly better Thursday after stronger than expected gross domestic product figures, with most stocks higher despite a selloff in market heavyweight Nvidia that weighed on the major indexes.
The Dow Jones industrial average gained 0.6 percent, the S&P 500 was flat, and the Nasdaq eased 0.2 percent. Bond yields and the dollar rose while oil prices surged.
Risk assets reacted favorably to revised GDP figures showing the economy expanded by 3.0 percent in the second quarter, pace by stronger than expected consumer spending. Equities traded up on GDP despite an uptick in market interest rates that followed. That suggested investors are more sensitive to downside risks than the impact of higher rates, and still look for a soft landing.
Bulls were also heartened that the overall market remained buoyant despite weakness in Nvidia after its long-awaited quarterly earnings report. The AI leader beat and raised its earnings outlook but did not top the market's most lavish expectations and some said the results showed its growth was slowing.
Other megacaps held up relatively well, and the market reacted mostly favorably to other earnings news. Best sectors included information technology, consumer discretionary and communication services. Lagging were real estate and consumer staples.
The Dow Jones industrial average gained 0.6 percent, the S&P 500 was flat, and the Nasdaq eased 0.2 percent. Bond yields and the dollar rose while oil prices surged.
Risk assets reacted favorably to revised GDP figures showing the economy expanded by 3.0 percent in the second quarter, pace by stronger than expected consumer spending. Equities traded up on GDP despite an uptick in market interest rates that followed. That suggested investors are more sensitive to downside risks than the impact of higher rates, and still look for a soft landing.
Bulls were also heartened that the overall market remained buoyant despite weakness in Nvidia after its long-awaited quarterly earnings report. The AI leader beat and raised its earnings outlook but did not top the market's most lavish expectations and some said the results showed its growth was slowing.
Other megacaps held up relatively well, and the market reacted mostly favorably to other earnings news. Best sectors included information technology, consumer discretionary and communication services. Lagging were real estate and consumer staples.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
