US: S&P 500 at fresh record on Micron results, China stimulus

WALL Street stocks powered higher on Thursday, with the S&P 500 finishing at a fresh record, following strong Micron earnings and statements from Beijing signaling likely additional stimulus.

Analysts described Micron’s earnings as a boon not only because they showed strong profitability, but because the company cited “robust” artificial intelligence demand, lifting other tech shares.

Micron itself jumped nearly 15 per cent.

The broad-based S&P 500 finished up 0.4 per cent at 5,745.37, up about 13 points from Tuesday’s record close.

The Dow Jones Industrial Average gained 0.6 per cent to 42,175.11, narrowly missing a record of its own, while the tech-rich Nasdaq Composite Index climbed 0.6 per cent to 18,190.29.

Market watchers also pointed to statements from Chinese President Xi Jinping signaling Beijing’s intent to take further steps to boost its economy, following a raft of measures announced earlier this week.

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Kim Forrest of Bokeh Capital Partners characterised China’s pivot on stimulus as “remarkable.”

Briefing.com analyst Patrick O’Hare also cited benign US jobless claims data, which adds to confidence the US economy can avoid a recession.

But O’Hare said investors are voicing more worry over excessive valuations, adding, “additional upside from here will feel harder to achieve.”

Among individual companies, Southwest Airlines shares gained 5.4 per cent after announcing a US$2.5 billion share repurchase programme while raising its third-quarter revenue forecast. AFP