Highlights
Another day of AI enthusiasm and wider technology stock gains helped lift equities Thursday with the S&P 500 and Nasdaq setting record closing highs. The Dow Jones industrial average and the S&P 500 both rose by 0.8 percent and the Nasdaq advanced 0.9 percent. Oil prices, bond yields and the dollar were all higher.
Among notable stocks: strong earnings from Cisco helped the Dow advance while Nvidia rallied on reports the US would allow advanced chip sales to China. Rising oil prices helped energy stocks outperform. Selected megacaps gave back some recent gains. Lagging sectors included communications services, consumer discretionary, health care, and real estate.
Somewhat positive coverage of the US-China summit under way in Beijing supported risk appetite, as did an as-expected mostly positive US retail sales report that suggests consumer resilience despite rising fuel costs. Expectations for rate cuts continue to fade on the upbeat economic picture and cautious comments from Federal Reserve officials.
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.