Wall Street stocks surged, with the Dow reaching another all-time high as Tesla, Amazon, and tech stocks soared following positive U.S. economic data that fueled rate-cut expectations.
Bollywood Fever: Wall Street experienced a strong rally on Friday, with the Dow Jones Industrial Average hitting its second consecutive all-time closing high, buoyed by significant gains in Tesla and Amazon.
Positive U.S. economic data for July, which indicated solid consumer spending and moderate price increases, fueled expectations that the Federal Reserve might modestly cut interest rates in September.
U.S. consumer spending data showed that the economy remains robust, with prices rising at a manageable pace.
Cameron Dawson, chief investment officer at Newedge Wealth, described the report as a “Goldilocks” scenario—steady growth without excessive inflation. “The market is really getting exactly what it wanted,” Dawson noted.
This “just-right” economic environment led to a surge in tech stocks, with Amazon.com and Tesla each climbing over 3%.
Broadcom rallied nearly 4%, while Marvell Technology soared 9% after exceeding quarterly expectations.
Nvidia also rebounded 1.5% after a steep drop the previous day, while Novavax surged 8.6% following FDA approval for an updated COVID-19 vaccine.
The S&P 500 rose by 1.01% to 5,648.40 points, the Nasdaq Composite climbed 1.13% to 17,713.62 points, and the Dow increased by 0.55% to 41,563.08 points.
All 11 S&P 500 sector indexes gained, with consumer discretionary stocks leading the way with a 1.9% increase.
Friday’s trading session concluded a volatile month, where initial fears of a U.S. recession sparked by labor market moderation were gradually eased by market rebounds. The S&P 500 posted a 2.3% gain for the month, the Dow added 1.8%, and the Nasdaq climbed 0.6%.
Despite the overall positive market trend, Ulta Beauty saw a 4% drop after trimming its annual forecasts due to slowing demand for high-priced cosmetics.
Intel surged nearly 10% amid reports of exploring merger options, and Dell Technologies advanced 4.3% after lifting its annual revenue and profit forecasts.
Looking ahead, traders are eyeing the Labor Department’s August jobs report due next week, which could further influence the Fed’s interest rate decisions.
As the market approaches the U.S. Labor Day holiday, trading volume remained slightly below average, reflecting a relatively quiet session.
With the market continuing to navigate economic data and Fed policy expectations, Wall Street’s focus remains on balancing growth with inflation control, as investors assess the implications for the remainder of the year.
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