The Dow
Tech stocks surged following Wednesday’s inflation report. Salesforce (CRM) led the gains, rising 3.9%, while Microsoft (MSFT) and Apple (AAPL) increased by 1.8% and 1.2%, respectively.
In contrast, Walt Disney (DIS) shares fell 2.5% after CEO Bob Iger acknowledged that the company had overinvested in its streaming service and was now taking steps to address ongoing profitability challenges.
Boeing (BA) declined 2.1% after the Department of Justice reported that the company had violated a 2021 settlement related to two fatal 737 crashes.
The S&P 500
Super Micro Computer (SMCI) shares surged 15.8% amid optimism that cooling inflation could prompt the Federal Reserve to cut interest rates this year. Other AI-related stocks also benefited: Vistra (VST) climbed 6%, Broadcom (AVGO) rose 4.1%, and Nvidia (NVDA) gained 3.6%.
Homebuilders saw significant gains on hopes for lower interest rates, which could make mortgages more affordable. D.R. Horton (DHI) and Lennar (LEN), two of the largest U.S. homebuilders, increased by 6.5% and 5.3%, respectively.
Albemarle (ALB) dropped 5.8% after the lithium miner announced it had not renewed a lithium processing partnership with Australian miner Patriot Battery Metals.
Insurance stocks fell as bond yields, a critical source of income for insurers, declined following the inflation report. Progressive (PRG) dropped 2.1%, Allstate (ALL) lost 1.7%, and Travelers (TRV) decreased by 1.5%.
The Nasdaq 100
Positive economic data boosted key players in the artificial intelligence sector, with Advanced Micro Devices (AMD) up 4.3% and Applied Materials (AMAT) up 3.7%.
Semiconductor companies also performed well, with Micron (MU) and Texas Instruments (TXN) each rising more than 2%.
Warner Bros. Discovery (WBD) shares slid 4.2% after regulatory filings revealed that Billionaire Seth Klarman’s Baupost Group had significantly reduced its stake in the company.
Food stocks retreated as investors shifted towards riskier assets. Keurig Dr. Pepper (KDP) fell 1.1% and Kraft Heinz (KHC) decreased by 0.9%.