Wall St gains on September rate-cut hopes; Meta soars
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US weekly jobless claims data higher than expected
Arm Holdings down after tepid Q2 revenue forecast
Eli Lilly up as weight-loss drug cut heart failure risk in trial
Moderna slumps after slashing 2024 sales forecast
Indexes up: Dow 0.60%, S&P 0.52%, Nasdaq 0.31%
Updated at 09:37 a.m. ET/ 1337 GMT
By Ankika Biswas and Shubham Batra
Aug 1 (Reuters) - Wall Street's main indexes rose on Thursday, liftedby the Federal Reserve's signals of a September rate cut and a rosy sales forecast from Meta, although apullback in chip stocks could keep gains in check.
Meta Platforms META.O surged 7.9% after itssecond-quarter revenue beat and upbeat third-quarter sales forecast pointed to the possibility that its artificial intelligence costs would be covered, boosting theCommunication Services sector .SPLRCL by 2.0%.
"It's very possible that Meta's spending a little too much on AI, but they think AI is such an important trend, and for the next 15 years it's going to be the place to be," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
The Facebook-owner's quarterly results were the first among "Magnificent Seven" companies toenthuse investors, allaying concerns around AI spending after dismalearnings from Alphabet GOOGL.O and Microsoft MSFT.O last month.
Markets havebeen on tenterhooks, looking for signs that the tech behemoths can hold on to their bumper gains after steering Wall Street to recordhighs this year on AI euphoria and hopes of early rate cuts.
Most megacap stocks rose, withApple AAPL.O and Amazon.com AMZN.O gaining 0.4% and 0.9%, respectively, ahead of their results after markets close. Tesla TSLA.O was down 2.3%.
AI trade favorite Nvidia NVDA.O rose 0.8%, a day after adding about $330 billion to its market value -a record one-day gain for any Wall Street company.
At 9:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 245.31 points, or 0.60%, at 41,088.10, the S&P 500 .SPX was up 28.47 points, or 0.52%, at 5,550.77, and the Nasdaq Composite .IXIC was up 53.82 points, or 0.31%, at 17,653.22.
The S&P 500 and the Nasdaq had their best day sinceFeb. 22 on Wednesday, after Fed Chair Jerome Powell offered the stock market a likely pivot to policy easing in September.
However, with prospects of rate cuts growing, investors are now trying to gauge if the central bank will be able to ease policy at a pace consistent with achieving the much awaited "soft landing" for the economy.
Data showed weeklyjobless claims rose to 249,000, higher than the 236,000 that was expected - another sign of labor market weakness ahead of Friday's Non-farm Payrolls reading.
The Russell 2000 .RUT small-cap index inchedup 0.5% after logging its biggest monthly gain in July since the start of 2024, on hopes that mid- and small-cap companies will benefit from a low-interest-rate environment.
Moderna MRNA.Oslumped 19.2% after cutting its2024 sales forecast for COVID-19 and respiratory syncytial virus vaccines by up to 25%.
Eli Lilly LLY.Nrose 2.5% aftertrial results showed weight-loss drug Zepbound reduces the risk of hospitalization, death and other outcomes for obese adults with a common type of heart failure.
Arm Holdings ARM.O slumped 8.3% after aconservative revenue forecast, while Qualcomm QCOM.O lost 5.1% on flagging a revenue hit after the U.S. revoked one of its export licenses for sanctioned Chinese telecom firm Huawei.
Advancing issues outnumbered decliners by a 2.04-to-1 ratio on the NYSE, andby a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and 30 new lows.
Reporting by Ankika Biswas, Shubham Batra and Johann M Cherian in Bengaluru; Editing by Pooja Desai
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
