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

Recent data reveals that the U.S. economy grew at an impressive annualized rate of 3% in the second quarter, surpassing the expectations set by Wall Street.

According to the Bureau of Economic Analysis, the third estimate of the second-quarter gross domestic product (GDP) confirmed this growth rate, which remains unchanged from previous estimates. Initially, economists had predicted a more modest annualized growth of 2.9%, making this outcome even more noteworthy. This figure also highlights a significant rebound from the 1.4% growth recorded in the first quarter of the year.

In addition, the U.S. Labor Department's latest report indicated that unemployment claims fell to 218,000 for the week ending September 21. This figure is below the forecasted 223,000 claims and marks the lowest level since mid-May, signaling a strengthening job market.

Furthermore, the latest data on durable goods orders for August showed a flat performance, which is a positive surprise compared to the anticipated decline of 2.6% that analysts had expected.

U.S. stock markets rose sharply on Thursday, with the S&P 500 hitting a new intraday high. This increase followed the release of better-than-expected economic growth figures and encouraging earnings from Micron, which helped boost the semiconductor industry.

The Dow Jones Industrial Average gained 0.5%, while the S&P 500 climbed 0.7%. The tech-focused Nasdaq Composite led the way with a 1.2% jump, largely due to a significant rise in Micron's stock.

Micron's strong earnings report gave a lift to the chip sector, benefiting major companies like Nvidia, which saw its shares rise by over 2% in early trading.

Recent data showed that the U.S. economy grew by 3% in the second quarter, which was higher than analysts had predicted. This strong growth indicates a healthy economic environment.

Oil prices dropped more than 3% on Thursday after a report from The Financial Times revealed that Saudi Arabia plans to reduce its voluntary production cuts, which could lead to lower crude prices.

West Texas Intermediate (WTI) crude fell below $68 per barrel, while Brent crude, the global benchmark, also slipped under $71 per barrel.

The OPEC+ coalition, led by Saudi Arabia, has been hesitant to increase oil supply in recent months to support prices. However, the group has been losing market share to the U.S. and other countries that have significantly increased their oil production. Last year, the U.S. achieved record levels of oil and natural gas output, further influencing the dynamics of the global oil market.

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.

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.

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.