US stocks surge to new heights as economic data fuels optimism

US stocks climbed overnight, with the S&P 500 reaching a new record following the release of encouraging U.S. economic data.

The broad market index rose 0.40 per cent to 5,745.37, achieving both an all-time high during the session and a record close, driven by gains in Micron Technology. The Nasdaq Composite added 0.60 per cent, finishing at 18,190.29, while the Dow Jones Industrial Average advanced 260.36 points, or 0.62 per cent, to close at 42,175.11.

Turning to the US sectors, most closed higher overnight. Materials was the best performer closing 1.97 per cent higher, Energy was the worst, dropping 2 per cent.

Micron saw a significant jump, closing 14.7 per cent higher after providing strong guidance for the current quarter, with its fiscal fourth-quarter results exceeding analysts’ expectations.

Other chip stocks also gained, with Applied Materials, ASML Holding, and Lam Research each up about 4%. Overall, the VanEck Semiconductor ETF (SMH) gained 2.9 per cent as well.

Overnight, crypto stocks rallied as Bitcoin surpassed $65,000. Coinbase rose 8%, its biggest gain since July 19, while MicroStrategy jumped 10%, its largest move since August 23. Mining stocks Mara Holdings and CleanSpark also gained 8%, reflecting their ties to Bitcoin.

Recent economic data helped bolster confidence, easing concerns that the Federal Reserve might resort to aggressive rate cuts due to a potential slowdown. Weekly jobless claims fell more than anticipated, suggesting stability in the labor market. Durable goods orders for August remained unchanged, countering economists' predictions for a decline, and the final reading of second-quarter GDP held steady at a robust 3 per cent.

The positive outlook across both the S&P 500 and Nasdaq Composite reflects investor confidence, especially with the strong performance of key sectors like technology. If this momentum persists, it may signal a continued phase of economic growth, further enhancing market optimism.

Futures

The SPI futures are pointing to a 0.2 per cent gain.

Currency

One Australian dollar at 7.30am was buying 68.96 US cents.

Commodities

Gold added 0.38 per cent. Silver gained 1.01 per cent. Copper jumped 3.33 per cent. Oil dropped 2.90 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.20 per cent, Frankfurt gained 1.69 per cent, and Paris closed 2.33 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 2.79 per cent, Hong Kong’s Hang Seng jumped 4.16 per cent, while China’s Shanghai Composite closed 3.61 per cent higher.

Yesterday, the Australian share market closed 0.95 per cent higher at 8204.

Ex-Dividends
360 Capital Mortgage (ASX:TCF) is paying 5 cents unfranked
360 Capital REIT (ASX:TOT) is paying 0.75 cents unfranked
Arena REIT. (ASX:ARF) is paying 4.5625 cents unfranked
Centuria I REIT (ASX:CIP) is paying 4.075 cents unfranked
Centuria Office REIT (ASX:COF) is paying 2.525 cents unfranked
Charter Hall Long WALE REIT (ASX:CLW) is paying 6.25 cents unfranked
Charter Hall Social Infrastructure REIT (ASX:CQE) is paying 3.75 cents unfranked
Comms Group Ltd (ASX:CCG) is paying 0.25 cents fully franked
Coventry Group CYG (ASX:) is paying 3.75 cents fully franked
Cromwell Prop (ASX:CMW) is paying 0.75 cents unfranked
Dexus Conv Ret REIT (ASX:DXC) is paying 5.138 cents unfranked
Dexus Industria REIT (ASX:DXI) is paying 4.1 cents unfranked
Lindsay Australia (ASX:LAU) is paying 2.8 cents fully franked
Rural Funds Group (ASX:RFF) is paying 2.9325 cents unfranked
Tasmea Limited (ASX:TEA) is paying 4 cents fully franked
Waypoint REIT (ASX:WPR) is paying 4.12 cents unfranked

Dividends payable
AUB Group Ltd (ASX:AUB)
AMP Ltd (ASX:AMP)
Atlas Pearls Ltd (ASX:ATP)
Australian Clinical Labs Ltd (ASX:ACL)
Commonwealth Bank of Australia (ASX:CBA)
Contact Energy Ltd (ASX:CEN)
Credit Corp Group Ltd (ASX:CCP)
EarlyPay Ltd (ASX:EPY)
Fortescue Ltd (ASX:FMG)
Gold Road Resources Ltd (ASX:GOR)
Gtn Ltd (ASX:GTN)
Iluka Resources Ltd (ASX:ILU)
LaserBond Ltd (ASX:LBL)
McMillan Shakespeare Ltd (ASX:MMS)
Monadelphous Group Ltd (ASX:MND)
Navigator Global Investments Ltd (ASX:NGI)
Origin Energy Ltd (ASX:ORG)
Shriro Holdings Ltd (ASX:SHM)
XRF Scientific Ltd (ASX:XRF)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
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