Breaking News: U.S. Stocks Soar on Micron's Strong Earnings and Powell's Speech - Analysis
In a surprising turn of events on Thursday, U.S. stocks surged, propelled by the outstanding quarterly earnings report from Micron, a leading memory chip maker. Additionally, all eyes were on Federal Reserve Chairman Jerome Powell's upcoming speech, as investors awaited further insights into the Fed's plans following last week's interest rate cut.
At 05:35 ET (09:35 GMT), the Dow Jones Industrial Average rose by 255 points, the S&P 500 climbed by 37 points, and the Nasdaq gained 200 points. These gains come on the heels of robust economic data, including a 3.0% annualized rate of U.S. growth in the second quarter and a decrease in the number of Americans filing for unemployment benefits.
Powell's speech at the US Treasury Market Conference is seen as a crucial event, with investors eager for any hints on future rate cuts. Meanwhile, Micron's stock soared by over 18% after reporting strong earnings driven by high demand for artificial intelligence technology.
On the flip side, oil prices slumped on fears of excess supply, as Saudi Arabia hinted at abandoning its $100 per barrel price target to increase production. This news overshadowed the report of a larger-than-expected drop in U.S. oil inventories.
In summary, the stock market's positive momentum, coupled with key economic indicators and corporate earnings, paints a picture of resilience and growth in the U.S. economy. Investors should monitor Powell's speech and ongoing developments in the oil market to make informed decisions about their finances.