Investing.com-- The S&P 500 climbed to another closing record Thursday, as a Micron-led surge in chip stocks and stronger economic data stoked sentiment on stocks.
At 4:00 p.m. ET (2000 GMT), the S&P 500 rose 0.5% to a closing record of 5,743.73. The NASDAQ Composite gained 0.6%, and the Dow Jones Industrial Average rose 280 points, or 0.7%.
Micron surges on strong AI-fueled earnings; Super Micro slumps on DoJ probe; Southwest Airlines lifts guidance
Micron (NASDAQ:MU) surged nearly 15% to lead chip stocks and the broader market higher after the memory chip delivered blowout guidance for the current quarter following fiscal fourth-quarter results that topped Wall Street estimates.
The firm is one of the biggest memory chip makers in the world, and said it was benefiting greatly from robust AI demand, which ramped up sales of its high-bandwidth memory chips.
But AI server maker Super Micro Computer Inc (NASDAQ:SMCI) failed to join in on the rally after the Wall Street Journal reported that the Department of Justice launched an investigation into the company, sending its shares more than 12% lower.
Southwest Airlines (NYSE:LUV) stock rose over 5% after the carrier raised its revenue-per-capacity guidance for the current quarter and announced a new $2.5 billion stock repurchase program.
Stronger economic data support soft landing optimism
On the economic front, investors sheered signs that the economy is in good share as durable goods orders unexpectedly rose in August, while jobless claims fell more than expected.
The final reading of GDP data was unrevised at a 3.0% gain on an annualized basis in the final Q2 report, Jefferies said in a Thursday note, as expected and "marking the largest gain in two quarters."
The duo of positive data came a day ahead of the PCE price index data -- the Fed’s preferred inflation gauge -- and is likely to factor into the central bank’s plans for rates.
Chair Jerome Powell didn't deliver any notable comments on monetary policy on Thursday, though Treasury Secretary Janet Yellen said the labor market suggests that the economy is on a path to a soft landing.
China tech stocks shine as Beijing pledges fresh stimulus
Alibaba Group Holdings Ltd ADR (NYSE:BABA), JD.com Inc Adr (NASDAQ:JD) and Baidu Inc (NASDAQ:BIDU) closed sharply higher, supported by a pledge from China to deliver fiscal stimulus to boost the economy and meet the country's roughly 5% growth target.
(Peter Nurse, Ambar Warrick contributed to this article.)