MSCI’s gauge of stocks across the globe gained 7.08 points, or 0.84%, to 850.69 and reached a record during trading
Global stock indexes hit record highs on Thursday following chipmaker Micron Technology’s upbeat forecast.
The S&P 500 logged an all-time closing high, as did the pan-European STOXX 600 index. MSCI’s global stock index touched an intraday record.
Micron’s forecast late on Wednesday bolstered optimism about demand for chips used for AI computing. Micron’s shares advanced 14.7% on Thursday, while an index of semiconductors was 3.5% higher.
U.S. Treasury yields edged up following strong data, including an unexpected drop in weekly U.S. jobless claims, led traders to cut bets that the Fed will make another 50 bp cut at its November meeting.
Last week’s rate cut by the U.S. central bank was its first cut in borrowing costs since 2020.
There’s a lot of focus on the labour market in terms of what the Fed is going to do next, according to Zachary Griffiths, senior investment grade strategist at CreditSights.
Other U.S. reports showed corporate profits rose at a more robust pace than initially thought in the second quarter, while GDP grew at an unrevised 3%.
Investors now await Friday’s release of the core PCE price index – the Federal Reserve’s preferred measure of inflation.
The Dow Jones Industrial Average (DJIA) gained 260.36 points, or 0.62%, to 42,175.11, the S&P 500 added 23.11 points, or 0.40%, to 5,745.37 and the Nasdaq Composite was up 108.09 points, or 0.60%, at 18,190.29.
European shares followed China’s market higher. The pan-European STOXX 600 index ended 1.3% higher at 525.61 points, an all-time closing high. MSCI’s gauge of stocks across the globe gained 7.08 points, or 0.84%, to 850.69 and reached a record during trading.
In Europe, China-exposed stocks such as luxury goods companies and miners outperformed.
