Record Highs in US Markets Driven by Strong Economic Data and AI Optimism

The S&P 500 reached a record closing high, with the Dow and Nasdaq also rising, fueled by Micron Technology's surge and strong U.S. jobless claims. Robust economic indicators have alleviated concerns about aggressive Federal Reserve rate cuts, while optimism surrounding AI and lower interest rates continues to drive market rallies.

The S&P 500 achieved a record closing high while the Dow and Nasdaq posted gains on Thursday, driven by a surge in Micron Technology shares and strong U.S. jobless claims data that alleviated labor market concerns.

Micron Technology shares soared 15.78% following an optimistic revenue projection for the first quarter, highlighting robust demand for memory chips in artificial intelligence computing. This led to a 3.77% increase in the broader Philadelphia SE Semiconductor index.

Positive U.S. economic data reduced worries about aggressive Federal Reserve rate cuts, as fewer-than-expected weekly jobless claims signaled a steady labor market. The final GDP reading indicated a 3% growth in the second quarter, supporting the narrative of strong economic growth.

(With inputs from agencies.)