Breaking News: S&P 500 Gains Despite Tech Drag from Nvidia - U.S. Economy Stronger Than Expected
In a surprising turn of events, the S&P 500 managed to eke out a gain on Thursday despite tech giant Nvidia dragging the tech sector lower. However, data pointing to a stronger U.S. economy helped allay recession fears and kept downside momentum in check.
At 4:00 p.m. ET (20:00 GMT), the S&P 500 rose 0.6%, the Nasdaq gained 0.1%, and the Dow fell 0.2%.
GDP growth in the second quarter exceeded expectations, growing by 3%, according to a Commerce Department report. This was better than the expected 2.8% growth and a significant jump from the 1.4% growth in the first three months of the year. Additionally, the Labor Department reported that initial claims for unemployment benefits were lower than economists' estimates, indicating a robust labor market.
Expectations of an interest rate cut in September have been driving Wall Street indexes higher, with Federal Reserve chair Jerome Powell laying the groundwork for a reduction at the recent Jackson Hole symposium.
In the tech sector, Nvidia saw a dip in its stock price after disappointing guidance, despite stronger-than-expected profits. On the other hand, Apple closed higher after reports of a potential investment in OpenAI.
While Dollar General stock slumped due to a cut in its annual sales forecast, companies like Salesforce, CrowdStrike, and Affirm shined on the earnings stage. Salesforce reported robust results, while CrowdStrike saw a rise in its stock price despite cutting revenue forecasts.
In conclusion, the U.S. economy is showing signs of strength, with positive GDP growth and a healthy labor market. Tech stocks like Nvidia and Apple are facing challenges, while companies like Salesforce and Affirm are performing well. Investors should pay attention to these trends and adjust their portfolios accordingly to maximize returns and minimize risks.