Wall Street Gains Amid AI Optimism and Fed Rate Cut Signals

Wall Street's main indexes rose as the Federal Reserve indicated possible rate cuts in September. Meta's strong revenue forecast and positive AI spending outlook boosted investor confidence. However, jobless claims were higher than expected, and Moderna cut its 2024 sales forecast. Despite mixed results, tech stocks, particularly Nvidia, showed gains.

Wall Street's main indexes experienced an uptick on Thursday, buoyed by the Federal Reserve's signals of a potential rate cut in September and an optimistic sales forecast from Meta. However, shares in chip stocks saw a decline that might cap overall gains.

Meta Platforms surged by 7.9% after its second-quarter revenue exceeded expectations, providing an upbeat third-quarter sales forecast. This led to a 2.0% boost in the Communication Services sector. Although there's some concern over Meta's AI expenditures, the optimistic outlook suggests these costs might be justified.

The S&P 500 and Nasdaq enjoyed their best day since February, influenced by Fed Chair Jerome Powell's indicators of possible policy easing. Despite the market's hopeful outlook, jobless claims rose higher than anticipated, and Moderna slashed its 2024 sales forecast, introducing mixed sentiments.

(With inputs from agencies.)