Wall Street Gains as AI Optimism and Strong Job Market Fuel Rally

Wall Street saw gains as Micron's positive AI forecast and a lower-than-expected jobless claims report buoyed investor sentiment. Micron's stock surged, leading to an uplift in the semiconductor index. The labor market report and GDP growth figures also contributed to the optimism, pushing major indexes higher.

Wall Street's major indexes rose in volatile trading on Thursday, with the S&P 500 achieving an intraday record after Micron's promising forecast renewed excitement over artificial intelligence. Concurrently, a favorable jobless claims report alleviated concerns about the labor market.

Micron Technology saw a significant 12.9% increase following its higher-than-anticipated first-quarter revenue forecast, highlighting robust demand for AI computing memory chips. This uplift in chip stocks propelled the Philadelphia SE Semiconductor index up by 2%.

Investors also analyzed a report from the Labor Department indicating jobless claims fell to a four-month low last week. The GDP's final reading confirmed a 3% growth in the second quarter. Chris Larkin, managing director at E*TRADE, stated that the current jobless claims data supports hopes for a soft landing in the labor market.

(With inputs from agencies.)