U.S. Stock Market Live Updates: S&P 500 and Nasdaq Rise on Positive GDP News and Optimism in the Chip Sector

On Thursday, new revisions to the Gross Domestic Product (GDP) data changed how we understand the US economy's performance in recent years. One significant update caught attention: the Bureau of Economic Analysis had initially reported that the economy shrank at an annualized rate of 0.6% in the second quarter of 2022. This followed another quarter of negative growth, raising concerns about a possible recession, as two back-to-back quarters of declining GDP are often seen as a warning sign of economic trouble.

However, the latest revisions paint a different picture. It turns out the US economy actually grew by an annualized rate of 0.6% during that same period. This new information clarifies why the much-anticipated recession was never officially declared by the National Bureau of Economic Research, which is the organization that officially tracks economic cycles.

The revisions highlight the importance of accurate data in understanding economic conditions. Many had feared a recession based on earlier reports, but this adjustment shows that the economy was more resilient than previously thought. This newfound clarity offers a more optimistic outlook on economic performance during that time.

By shedding light on the true state of the economy, these revisions can help policymakers, businesses, and consumers make more informed decisions moving forward.

The S&P 500 is gearing up to close at a new record high today, thanks to a wave of positive news. Investors are feeling optimistic about solid economic data, encouraging earnings from Micron Technology (MU), and fresh commitments to stimulus from China. Additionally, many are looking forward to comments from Fed Chair Jerome Powell, who is expected to speak today alongside other Federal Reserve officials.

On the trading floor, the Dow Jones Industrial Average (^DJI) saw a rise of 0.6%, while the S&P 500 (^GSPC) climbed about 0.3% after both had slipped back from their previous all-time highs. The tech-heavy Nasdaq Composite (^IXIC) also enjoyed a boost, increasing nearly 0.3%, largely driven by a notable spike in Micron’s shares.

Shares of Super Micro Computer experienced a significant decline of over 13% following a report by the Wall Street Journal revealing that the Justice Department is investigating the company, known for its data center servers. The stock faced temporary halts due to heightened volatility as the news unfolded.

The investigation is linked to claims made by short seller Hindenburg Research in August, which alleged instances of "accounting manipulation" within the rapidly growing artificial intelligence sector. After the report broke, Super Micro’s shares fell as much as 17% before trading was briefly paused.

Meta Platforms Inc. (META) saw its stock briefly reach a new all-time intraday high on Thursday, buoyed by excitement surrounding the company's artificial intelligence initiatives. Following a developer event that showcased its ambitious AI vision, shares climbed to a peak of $577 after the market opened. However, the stock later settled down, trading around $564, reflecting a slight decrease of 0.7%.

During the Meta Connect 2024 event, CEO Mark Zuckerberg introduced the company's latest AI model, Llama 3.2, further solidifying Meta's position in the AI space and drawing significant attention from investors.

Target (TGT) is actively addressing the persistent issue of retail theft that has plagued the industry for years. In a recent interview with Yahoo Finance for its "Lead This Way" series, Target CEO Brian Cornell expressed a more optimistic outlook compared to last year. "I feel so much better today than I did a year ago," he stated, emphasizing the importance of support from federal, state, and local governments in tackling this issue.

Cornell highlighted recent legislative efforts, particularly in California, where state initiatives are making strides to address marketplace abuses. He believes these developments could lead to significant changes in how retailers manage theft, including the eventual removal of locked cases in stores.

Congress has successfully averted a government shutdown by passing a funding measure that ensures government operations will continue for the next three months. President Joe Biden thanked both parties for their cooperation, stating, "I want to thank both houses of Congress for this bipartisan agreement and for avoiding a costly government shutdown."

While this decision brings temporary relief, the budgetary struggles are far from over. Lawmakers will soon confront new spending debates when they return to Washington after the November elections. The underlying issues that necessitated this funding bill remain unresolved, setting the stage for potential conflicts ahead.