The latest reports help to ease recession concerns
US stocks were mixed on Thursday, with the Dow adding 0.6% to hit fresh record highs amid investor optimism driven by solid economic data. According to the official report, the US GDP was revised higher to 3% growth in the second quarter from an initial 2.8% rate. The release helped ease recession concerns, especially as weekly jobless claims fell from the prior week.
On the negative side, the S&P 500 finished below the flatline while the Nasdaq Composite shed 0.2% as Nvidia weighed on both indexes. The AI chipmaker revealed strong quarterly earnings, but more modest forecasts spooked investors. Shares of NVDA fell more than 6% overnight, extending the decline from the previous session.
Meanwhile, the US dollar extended its recovery from more than one-year lows registered around 100.50 earlier in the week. The USD index has settled below 101.50 after a rejection from the 101.50 zone earlier in the day. The greenback cheered strong GDP and jobs data as the figures made traders trim bets on a more aggressive rate cut by the Fed next month. On Friday, the US currency looks steady as traders await US PCE data due later in the day.
Asian equities were mostly higher today as investors continued to be cautiously optimistic about the health of global economies. Japan’s benchmark Nikkei 225 added 0.7% after fresh data showed that industrial production rose 2.8% in July from the previous month, a rebound from minus 4.2% in June. Meanwhile, Hong Kong’s Hang Seng surged 1.14% and the Shanghai Composite rose 0.68%. Australia’s S&P/ASX 200 gained 0.6%.
In Europe, stocks hit record highs after a positive start to the session. The pan-European STOXX 600 index was up 0.2% in early deals and is set to set to gain 1.3% for the week. The French benchmark CAC 40 gained 0.3% after its CPI data showed consumer spending grew this month. Meanwhile, the euro is slightly higher around 1.1090 after a solid two-day slide witnessed amid some recovery in USD demand.
