Stocks Soar as S&P 500 and Dow Hit Record Highs Amid Economic Optimism

The S&P 500 and Dow Jones reached new highs despite Nvidia's slight decline due to China concerns. Optimism around AI technology and U.S. economic growth fueled the stock market rally, while interest rate cuts were anticipated ahead of the Federal Reserve's upcoming meeting. Oil and gold prices also saw gains.

The Dow Jones Industrial Average and S&P 500 marked record highs on Thursday, buoyed by robust economic data and sustained interest in artificial intelligence technology. Nvidia shares dipped 0.8% amid China-related uncertainties, but the company forecasted a strong revenue outlook, hinting at continuing demand for AI capabilities.

Investors reacted positively to the prospect of future U.S. interest rate cuts, which sparked gains across major indices, including a 0.53% rise in the Nasdaq. Meanwhile, concerns over debt plans in Europe and Federal Reserve leadership changes added to the day's mixed economic signals.

As bond markets prepared for possible rate cuts, oil prices climbed, and spot gold reached a five-week high, indicating broader economic implications. As the Federal Reserve's September policy meeting approaches, the financial world watches closely for indications of economic strategy deliberations.

(With inputs from agencies.)