Wall Street experienced mostly positive movement on Thursday as investors analyzed the potential benefits and drawbacks of the US economy’s resilience, which surpassed expectations.
- The S&P 500 increased by 19 points, or 0.4%, reaching 43,396.
- The Dow rose by 269 points, or 0.8%, reaching 34,122.
- The Nasdaq, with a focus on technology, slightly declined to 13,591.
One contributing factor to these generally positive results was the Federal Reserve’s announcement that the country’s 23 largest banks passed their latest “stress test,” indicating their ability to endure a severe recession, as reported by the AP. A failure would have limited banks’ ability to distribute dividends or repurchase their own stocks, thereby reducing cash flow for shareholders. Wall Street had been scrutinizing smaller and mid-size banks, searching for potential weak links in the system. Consequently, several banks recovered on Thursday, recuperating from significant losses earlier this year. Notably, PacWest Bancorp gained 3.4%.
Rite Aid saw a 4% increase after reporting a much stronger profit in the latest quarter than analysts predicted. Conversely, Micron Technology experienced a 3.9% decline, one of the largest in the S&P 500, after projecting a larger summer loss than anticipated. McCormick, a spices company, fell by 4.9% after reporting lower-than-expected revenue for the quarter, although its profit exceeded expectations.
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