New York, August, 2024 – The US stock market experienced a significant rally on Thursday, driven by a surge in major technology stocks and encouraging economic data. The Nasdaq Composite surged nearly 3%, buoyed by gains in tech giants like Nvidia, Apple, Tesla, and Intel.
The Dow Jones Industrial Average advanced by 683.04 points, or 1.76%, closing at 39,446.49. The S&P 500 climbed 119.81 points, or 2.30%, ending at 5,319.31. The Nasdaq Composite gained 464.22 points, or 2.87%, to finish at 16,660.02, with the Nasdaq 100 rising by more than 3%.
Nvidia saw a notable increase of 6.13% in its stock price, while Advanced Micro Devices surged nearly 5.95%. Intel’s shares jumped 7.9%, and Tesla, the electric vehicle manufacturer, saw a 3.69% rise.
Other significant gainers in the tech sector included Apple, with a 1.66% increase; Microsoft, which rose 1.07%; Amazon, up 1.86%; and Alphabet, which climbed 1.92%. Additionally, stocks such as Arista Networks, Marvell, ON Semiconductor, Microchip, Broadcom, and Qualcomm saw gains ranging from 6% to 10% within the Nasdaq 100.
In pre-market trading on Friday, US stock index futures showed positive movement. Nasdaq 100 futures were up 0.3%, while futures for the Dow Jones Industrial Average remained largely unchanged.
The rally in US equities followed a positive jobs report that alleviated concerns about a slowing economy. Initial claims for state unemployment benefits decreased by 17,000 to a seasonally adjusted 233,000 for the week ending August 3, marking the largest drop in approximately 11 months. This figure was better than the 240,000 claims forecast by economists surveyed by Reuters.
Additionally, optimism about potential interest rate cuts by the Federal Reserve contributed to the market’s gains. Federal Reserve officials indicated growing confidence that inflation is moderating, suggesting that interest rate reductions may be on the horizon. This perspective, as noted by three Fed policymakers speaking on Thursday, is based on economic data rather than market volatility, Reuters reported.
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