Stocks Settle Higher on Upbeat Tech Outlook and Cooling Inflation
The stock market saw positive gains on Thursday, with major indexes closing higher. The S&P 500 Index, the Dow Jones Industrials Index, and the Nasdaq 100 Index all ended the day in the green, with December E-mini futures also posting gains.
Chip stocks led the rally, with Micron Technology surging more than 10% after a strong forecast for the current quarter. The Magnificent Seven technology stocks also performed well, supporting the overall market. Additionally, positive US economic data, including lower jobless claims and a mild inflation report, contributed to the market’s upward momentum.
Overseas markets had a mixed performance, with the Euro Stoxx 50 and China’s Shanghai Composite closing higher, while Japan’s Nikkei Stock 225 fell to a three-week low.
In the bond market, March 10-year T-notes closed higher, with the yield falling to a 1.5-week low. The yield curve steepened, indicating bearish sentiment for T-note prices. European government bond yields were mixed, with the German bund yield falling and the UK gilt yield rebounding.
In stock news, Micron Technology led chip makers higher, while the Magnificent Seven technology stocks, including Tesla and Amazon.com, also saw gains. Trump Media & Technology Group surged after announcing a merger, while Rivian Automotive, GE Vernova, and Cytokinetics also posted gains. However, Insmed, Birkenstock Holding Plc, and FactSet Research Systems were among the top losers.
Looking ahead, the focus will be on US economic news, with existing home sales and the University of Michigan consumer sentiment index on the agenda. The markets are pricing in a 27% chance of a Fed rate cut at the next FOMC meeting in January.
Overall, the market outlook remains positive, supported by strong corporate performance and favorable economic indicators. Investors will be closely watching upcoming data releases and earnings reports for further guidance on market direction.
