U.S. stocks closed higher on Thursday, with the S&P 500 hitting fresh record highs as positive economic data boosted risk sentiment.
During the regular session, the Dow Jones Industrial Average surged 260.4 points, or 0.6%, to close at 42,175.1, The S&P 500 advanced by 0.4%, closing at 5,745.4, a new all-time high. The Nasdaq Composite also gained 0.6%, ending at 18,190.3.
Micron Technology led the charge, closing 14.7% higher after delivering robust guidance for the current quarter. The company's fiscal fourth-quarter results exceeded analysts' expectations, further boosting investor sentiment.
The stock market rally was also fuelled by encouraging economic data, calming concerns over the Federal Reserve's aggressive rate cuts due to potential economic slowdown.
Among data releases, the final reading of second-quarter GDP remained steady at a healthy 3%, reinforcing confidence in the economy's strength.
Additionally, weekly jobless claims fell more than expected, while durable goods orders for August were flat, defying predictions of a decline.
Both the S&P 500 and the Dow had briefly pulled back on Wednesday, following a strong recent run. However, Thursday’s gains helped push both indexes to new highs, with investor optimism buoyed by signs of a stable U.S. economy.
On the bond markets, 10-year and 2-year rates were at 3.796% and 3.627%, respectively.