Following the pullback in the previous session, stocks rebounded on Thursday. Despite retreating after an early rally, the major indices ended the day positively.
The S&P 500 gained 23.11 points, or 0.4%, reaching a record high of 5,745.37. The Dow climbed 260.36 points, or 0.6%, to 42,175.11, and the Nasdaq advanced by 108.09 points, or 0.6%, to 18,190.29.
The initial surge on Wall Street was largely fueled by strength in the tech sector, led by chipmaker Micron Technology (MU).
Micron shares surged 14.7% following the company's report of better-than-expected fiscal fourth-quarter results and strong fiscal first-quarter revenue guidance.
Stocks also got a boost from positive U.S. economic data. The Labor Department reported a surprising dip in first-time claims for unemployment benefits for the week ending September 21.
Initial jobless claims decreased to 218,000, a 4,000 drop from the previous week's revised level of 222,000. This defied economists' expectations, who had anticipated a rise to 225,000 from the initially reported 219,000 for the prior week.
This decline brought jobless claims to their lowest level since mid-May, when claims were at 216,000.
Additionally, the Commerce Department reported that new orders for U.S. manufactured durable goods remained flat in August, following a 9.9% surge in July. Economists had projected a 2.6% decline.
Excluding transportation equipment, durable goods orders rose 0.5% in August, recovering from a 0.1% decrease in July, and surpassing the expected 0.1% increase.
**Sector Performance**
Airline stocks were among the top performers, with the NYSE Arca Airline Index soaring by 5.3%, marking its best closing level in over three months. Southwest Airlines (LUX) significantly contributed to this rise, surging 5.4% after upgrading its third-quarter revenue guidance and announcing a share repurchase program.
Semiconductor stocks also showed notable strength following Micron's positive news, pushing the Philadelphia Semiconductor Index up by 3.5%.
Gains were also seen in computer hardware, steel, and biotechnology stocks, while energy stocks declined sharply in tandem with crude oil prices.
**Other Markets**
In overseas markets, Asia-Pacific stocks surged on Thursday. Japan's Nikkei 225 Index grew by 2.8%, while China's Shanghai Composite Index rose by 3.6%.
European markets also advanced, with the French CAC 40 Index increasing by 2.3%, the German DAX Index up by 1.7%, and the U.K.'s FTSE 100 Index inching up by 0.2%.
In the bond market, treasuries showed mixed movements but closed slightly lower. The yield on the benchmark ten-year note edged up by 1.0 basis point to 3.791%.
**Looking Ahead**
Friday's trading may be influenced by the Commerce Department's report on personal income and spending, which includes the Federal Reserve's preferred inflation gauge.