The main stock indices of Wall Street closed with gains in Thursday’s session, reflecting optimism following the release of economic indicators that exceeded market expectations.
The Industrial Average Dow Jones rose by 0.62 percent to 42,175.11 points; the Nasdaq Composite increased by 0.60 percent, reaching 18,190.29 units. Meanwhile, the S&P 500 gained 0.40 percent, climbing to 5,745.37 points, marking a new historical high.
Part of the rebound was driven by Micron Technology, a chip manufacturer, whose shares closed the session up over 14.73 percent, citing robust demand for artificial intelligence.
“The main US stock indices are rising, supported by the expectation that the ruling party in China will enhance the country’s economic growth with fiscal stimulus measures,” stated Valmex.
How did the US GDP report influence the markets?
Additionally, markets reacted to the release of two crucial indicators of the US economy. The third and final revision of GDP for the second quarter of the year shows that the economy grew at a 3.0 percent annualized rate, unchanged from the second revision.
Furthermore, jobless claims for unemployment insurance decreased by 4,000, totaling 218,000, suggesting a degree of employment resilience and no anticipated rebound in the unemployment rate.
How did the markets in Mexico perform?
Similar to the Wall Street indices, the stock markets in Mexico also closed in the green. The S&P/BMV rose by 0.75 percent to 53,590.52 points, and the FTSE BIVA increased by 0.82 percent, reaching 1,092.82 points.
In Asia, the Japanese Nikkei gained 2.79 percent, its largest increase since September 12; Hong Kong’s Hang Seng rose by 4.16 percent, marking its best session since March 1, 2023, while Shanghai’s CSI 300 advanced by 4.23 percent.
In Europe, France’s CAC 40 climbed by 2.33 percent; Germany’s DAX rose by 1.59 percent; Spain’s IBEX 35 increased by 1.36 percent, and London’s FTSE 100 added 0.20 percent.
Regarding oil prices, significant declines were observed, with WTI dropping by 3.21 percent to trade at $67.45 per barrel, while Brent fell by 2.86 percent to $71.36.
The decrease in crude oil prices follows an announcement by Saudi Arabia, which plans to increase its crude oil production in December, signaling a move away from its unofficial goal of maintaining prices at $100 per barrel.
The main stock indices of Wall Street closed with gains in this Thursday’s session, showing optimism after the publication of economic indicators that exceeded market expectations.
Market Performance Overview
The Industrial Average Dow Jones advanced 0.62 percent to 42,175.11 points. Meanwhile, the Nasdaq Composite gained 0.60 percent, rising to 18,190.29 units. Furthermore, the S&P 500 climbed 0.40 percent, reaching a new historical high of 5,745.37 points.
Key Drivers of Market Gains
A significant contributor to this rebound was the strong performance of Micron Technology, a leading chip maker, which saw its shares close the session with a remarkable gain of more than 14.73 percent. The company’s positive outlook was underpinned by solid demand driven by the rise of artificial intelligence technologies.
Market analysts at Valmex noted that “The main US stock indices are on the rise, supported by expectations that the ruling party in China will enhance the country’s economic growth through fiscal stimulus measures.”
Impact of the US GDP Report
The markets responded notably to the release of two pivotal economic indicators from the US. The third and final review of GDP for the second quarter revealed that the economy grew by 3.0 percent at an annualized quarterly rate, remaining unchanged from the previous review.
Moreover, initial applications for unemployment insurance decreased by 4,000 to a total of 218,000, suggesting resilience in the labor market and indicating that a rebound in the unemployment rate is not anticipated at this time.
Mexican Markets Follow Suit
Similar to the indices on Wall Street, Mexican stock markets also closed positively, with The S&P/BMV advancing 0.75 percent to 53,590.52 points, while the FTSE BIVA rose by 0.82 percent, landing at 1,092.82 points.
Global Market Trends
In Asia, the Japanese Nikkei saw a substantial gain of 2.79 percent, marking its largest increase since September 12. Additionally, Hong Kong’s Hang Seng surged by 4.16 percent—its best session since March 1, 2023—and Shanghai’s CSI 300 advanced 4.23 percent.
In Europe, major indices also experienced positive movements: France’s CAC 40 rose by 2.33 percent, Germany’s DAX increased by 1.59 percent, Spain’s IBEX 35 gained 1.36 percent, and the FTSE 100 of London advanced by 0.20 percent.
Crude Oil Market Dynamics
In terms of commodities, notable declines were observed in crude oil prices, with WTI falling by 3.21 percent to $67.45 per barrel, while Brent dropped 2.86 percent to $71.36 per barrel.
This drop in crude oil prices followed an announcement from Saudi Arabia, indicating plans to increase crude production in December, effectively moving away from its unofficial objective of maintaining prices at $100 per barrel.
Benefits of Monitoring Stock Indices
Keeping an eye on the major stock indices can provide several benefits:
- Investment Insights: Understanding market trends helps investors make informed decisions on buying and selling stocks.
- Risk Management: Tracking indices can aid in assessing market risks and diversifying investment portfolios.
- Economic Indicators: Stock indices often reflect the overall economic health and can signal potential growth opportunities in various sectors.
- Global Market Connections: Observing how foreign indices react can provide context and foresight for local market movements.
Practical Tips for Investors
Here are a few practical tips for investors looking to navigate through these volatile times:
- Diversify Your Portfolio: Spread investments across various asset classes to mitigate risks.
- Stay Informed: Regularly update yourself with news on economic indicators and market trends.
- Utilize Stop-Loss Orders: Protect your investments by setting stop-loss orders to minimize potential losses.
- Consider Long-Term Investments: Focus on long-term growth rather than short-term volatility for sustained returns.
Table of Recent Market Performance
| Index | Closing Points | Change (%) |
|---|---|---|
| Dow Jones | 42,175.11 | +0.62% |
| Nasdaq Composite | 18,190.29 | +0.60% |
| S&P 500 | 5,745.37 | +0.40% |
| S&P/BMV | 53,590.52 | +0.75% |
| FTSE BIVA | 1,092.82 | +0.82% |
