All three major US stock indexes rose on 8/9. The S&P 500 climbed 0.2% to 6,495 points. The Nasdaq Composite added 0.4% to a record 21,798 points. The Dow Jones Industrial Average closed at 45,524 points, a 0.2% gain.
The Nasdaq's ascent was fueled by chipmaker Broadcom. Its shares rose 3.2% on 8/9, after the company projected strong revenue growth related to artificial intelligence. Broadcom’s market capitalization is now 1,600 billion USD, the 7th highest on Wall Street.
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Traders on the floor of the New York Stock Exchange (NYSE). Photo: Reuters |
Traders on the floor of the New York Stock Exchange (NYSE). Photo: Reuters
Shares of trading platform Robinhood Markets surged 16%. Meanwhile, marketing platform AppLovin jumped 12%. Both companies will be added to the S&P 500 index starting 22/9.
EchoStar, a telecommunications company, saw its shares rise 20% after agreeing to sell wireless spectrum licenses to SpaceX for its Starlink satellite network for approximately 17 billion USD.
The S&P 500 gained as investor confidence grew that the US Federal Reserve (Fed) would soon cut interest rates to support the economy. Investors now anticipate multiple rate cuts this year following last week's jobs report, which indicated a weakening US labor market.
The CME FedWatch tool shows a 100% probability that the Fed will cut rates by at least 25 basis points at next week’s meeting. There's a 10% chance of a 50 basis point cut.
"All eyes are on next week’s meeting. The market is being greedy. They’ve already priced in a 25 basis point cut, but now they're predicting double that. That's not going to happen," said Jake Dollarhide, CEO of Longbow Asset Management.
Several banks have also adjusted their Fed forecasts. Barclays now anticipates three rate cuts this year, up from two previously. Standard Chartered even expects a 50 basis point cut next week.
US stock markets have recently been breaking records. The S&P 500 is up 10% since the start of the year, and the Nasdaq has climbed 13%. This week, investors will be watching inflation data and the revised jobs report to assess the health of the US economy.
Ha Thu (Reuters)
