WASHINGTON (dpa-AFX) - After showing a lack of direction early in the session, stocks moved mostly higher over the course of the trading day on Thursday. The major averages added to the gains posted in the two previous sessions, with the S&P 500 reaching another new record closing high.
The major averages ended the day just off their highs of the session. The Nasdaq climbed 115.02 points or 0.5 percent to 21,705.16, the S&P 500 rose 20.46 points or 0.3 percent to 6,501.86 and the Dow edged up 71.67 points or 0.2 percent to 45,636.90.
The strength that emerged on Wall Street came as traders digested highly anticipated earnings news from Nvidia (NVDA), with the AI darling and market leader reporting reported second quarter results that largely exceeded expectations but data center sales that came in below estimates
While shares of Nvidia ended the day down by 0.8 percent, the company's stock climbed well off its early lows, contributing the advance by the broader markets.
Investors were also looking ahead to Friday's release of the Commerce Department's on personal income and spending in the month of July, which includes the Federal Reserve's preferred readings on consumer price inflation.
The report, which is expected to show an uptick in the annual rate of core consumer price growth to 2.9 percent in July from 2.8 percent in June, could impact the outlook for interest rates.
CME Group's FedWatch Tool is currently indicating an 87.2 percent chance the Fed will lower rates by a quarter point at its next monetary policy meeting in September.
On the U.S. economic front, the Commerce Department released a report showing the U.S. economy grew by more than previously estimated in the second quarter of 2025.
The report said real gross domestic product shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge. Economists had expected the jump in GDP to be upwardly revised to 3.1 percent.
The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to investment and consumer spending.
A separate report released by the Labor Department on Thursday showed a modest decrease by first-time claims for U.S. unemployment benefits in the week ended August 23rd.
The Labor Department said initial jobless claims dipped to 229,000, a decrease of 5,000 from the previous week's revised level of 234,000.
Economists had expected jobless claims to slip to 230,000 from the 235,000 originally reported for the previous week.
Sector News
While most of the major sectors showed only modest moves on the day, computer hardware stocks moved sharply higher, driving the NYSE Arca Computer Hardware Index up by 4.4 percent to a record closing high.
Pure Storage (PSTG) helped lead the sector higher, skyrocketing by 32.3 percent after reporting better than expected second quarter results and raising its full-year guidance.
Networking and software stocks also saw notable strength, contributing to the advance by the tech-heavy Nasdaq, while utilities and telecom stocks moved to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday. Japan's Nikkei 225 Index climbed by 0.7 percent and China's Shanghai Composite Index jumped by 1.1 percent, although Hong Kong's Hang Seng Index bucked the uptrend and slid by 0.8 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index edged up by 0.2 percent, the German DAX Index closed just below the unchanged line and the U.K.'s FTSE 100 Index fell by 0.4 percent.
In the bond market, treasuries extended the upward move seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 4.207 percent.
Looking Ahead
The consumer price inflation data is likely to be in the spotlight on Friday, overshadowing reports on Chicago-area business activity and consumer sentiment.
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