U.S. stocks remained stable near record levels on Thursday as positive signals about the economy continued to fuel optimism. The S&P 500 closed unchanged after hovering near its all-time high throughout the day, while the Dow Jones Industrial Average set a new record, gaining 0.4%. The tech sector, led by Nvidia, saw strong performance after Taiwan Semiconductor Manufacturing Co. reported better-than-expected profits. However, Alphabet and Elevance Health saw declines, balancing out the market.
In the bond market, Treasury yields rose following encouraging reports on U.S. retail sales and unemployment benefits. The data revealed stronger underlying growth trends than expected, indicating a resilient economy. The hope for a successful economic rebound from high inflation without a recession is driving stock prices to record levels, with the Federal Reserve cutting interest rates to support growth.
The European Central Bank also cut interest rates, boosting European stock indexes, while Asian markets experienced losses. On Wall Street, Travelers and Blackstone reported stronger profits, offsetting losses from Elevance Health and CSX.
Overall, the S&P 500 slipped slightly, while the Dow and Nasdaq saw modest gains. The bond market saw an increase in Treasury yields, as traders adjusted expectations for Fed rate cuts. The positive economic data continues to drive market optimism, with investors hopeful for further stock market gains despite concerns about high valuations.
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