Wall Street ends sharply up, fueled by Nvidia and Amazon
- Data shows mild U.S. economic contraction in second quarter
- Salesforce falls after slashing outlook
- Tesla slides as 3-for-1 stock split kicks in
- Indexes: $S&P 500 Index (.SPX.US)$ +1.41%, $Nasdaq Composite Index (.IXIC.US)$ +1.67%, $Nasdaq Composite Index (.IXIC.US)$ +0.98%
- Salesforce falls after slashing outlook
- Tesla slides as 3-for-1 stock split kicks in
- Indexes: $S&P 500 Index (.SPX.US)$ +1.41%, $Nasdaq Composite Index (.IXIC.US)$ +1.67%, $Nasdaq Composite Index (.IXIC.US)$ +0.98%
Wall Street ended sharply higher on Thursday, lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserve's Jackson Hole conference for clues about the central bank's policy outlook.
Fed Chair Jerome Powell is due to give a speech on Friday that investors will dissect for indications of how aggressively the Fed may move to raise interest rates as it battles decades-high inflation.
$NVIDIA (NVDA.US)$ jumped 4% after the graphics chipmaker gave a weaker-than-expected quarterly forecast that many investors viewed as signaling the worst of a sales downturn may be over. That drove a rally in the Philadelphia semiconductor index . $PHLX Semiconductor Index (.SOX.US)$.
$Apple (AAPL.US)$ and $Microsoft (MSFT.US)$ rose more than 1%, while $Amazon (AMZN.US)$ and $Alphabet-A (GOOGL.US)$ added more than 2%, with all four companies making substantial contributions to the Nasdaq's increase.
All 11 S&P 500 sector indexes rose, led by materials .SPLRCM, up 2.26%, followed by a 2.06% gain in communication services.
Data earlier in the day showed the U.S. economy contracted less than initially thought in the second quarter, dispelling some fears that a recession was underway.
Traders see a slightly greater likelihood of a third 75-basis-point interest hike from the Fed at its policy meeting next month, compared with a 50-basis-point increase.
Fed officials on Thursday were noncommittal about the size of the interest rate increase they plan to approve at their Sept. 20-21 meeting, but they continued hammering the point that rates will rise and stay high until such high rates of inflation have been squeezed from the economy.
$Citigroup (C.US)$ climbed 2.1% after saying it plans to close its consumer and commercial banking businesses in Russia starting this quarter.
$Salesforce (CRM.US)$ fell 3.4% after it cut its annual forecasts over "measured" spending from clients and a hit from a stronger dollar.
Additional chipmakers rallying on Thursday $Advanced Micro Devices (AMD.US)$ , up 4.8%, and $Broadcom (AVGO.US)$ , which gained 3.6%. $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$
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