The Dow Jones Industrial Average and the S&P 500 reached all-time highs during a positive trading session on Thursday. Nvidia (NVDA) was among the top performers, surpassing its trendline entry.
The Dow rose by 522 points, representing a 1.3% increase and setting a new closing record. The S&P 500 also saw gains of 1.7%, marking its own record high, while the Nasdaq composite outperformed with a 2.5% surge, closing above the 18,000 mark for the first time since July 22.
The small-cap Russell 2000 climbed 2.1%, and the Innovator IBD 50 ETF (FFTY) increased by 2.2%. Preliminary figures indicated a rise in trading volume on both the New York Stock Exchange and Nasdaq, with advancers outpacing decliners at a roughly 3-to-1 ratio.
More stocks experienced breakouts on Thursday. In building products, Modine Manufacturing (MOD) broke above its cup-with-handle buy point of 121.66, with volume approximately 45% above average and a relative strength line reaching new highs, suggesting a bullish trend.
The yield on the benchmark 10-year Treasury note increased by five basis points to 3.74%.
Tesla (TSLA) surged over 6% during the trading day, benefiting from lower borrowing costs expected for automakers. The stock is consolidating with a buy point at 271, and Tesla’s anticipated robotaxi event is set for October 10.
Taiwan Semiconductor (TSM) also broke out of a cup-with-handle base with a buy point of 175.45, although afternoon trading volume was slightly below average.
Nvidia advanced more than 4% in the afternoon session, successfully moving past its 50-day moving average after attempting to reach it for a week, and clearing a trendline entry around 118.
In the IBD MarketSurge Growth 250, Arista Networks (ANET) crossed a buy point of 376.50, while Oscar Health (OSCR) broke out from a 23.44 buy point in a cup base. Spotify (SPOT) also broke out of a consolidation with a buy point of 359.38.
In economic news, initial jobless claims for the week ending September 14 decreased to 219,000, lower than the anticipated 230,000, with the previous week’s claims reported at 230,000. Existing home sales for August fell short of estimates at 3.86 million, compared to the expected 3.9 million.
Tech stocks boosted the Dow, with Apple (AAPL) rising nearly 4% after opening and clearing its 50-day moving average with a buy point at 237.23. Microsoft (MSFT) made headway toward a buy point of 468.35, increasing by almost 2%. Salesforce (CRM) gained over 5% as its Dreamforce conference concluded.
While retail and healthcare stocks lagged, financial stocks performed well.
Homebuilders experienced a lift following the Federal Reserve’s significant rate cut on Wednesday. Pulte Homes (PHM) advanced further toward a profit zone from a buy point of 122.72 and is listed on the IBD Leaderboard. Toll Brothers (TOL) also rose, while Dream Finders Homes (DFH) remained steady in a cup base with a buy point of 44.38.
Lennar (LEN), another homebuilder, plans to announce its third-quarter earnings at market close. The stock continued to rise on Thursday and is well extended.
Earnings boosted Darden Restaurants (DRI) by 8%, allowing it to surpass a buy zone from a 160.64 buy point. The parent company of Olive Garden restaurants has maintained its full-year outlook despite missing first-quarter estimates and has announced a new partnership with Uber (UBER).
FedEx (FDX) gained ground in a flat base with a buy point of 313.84 ahead of its first-quarter results, which are expected after the market close. General Mills (GIS) reported a decline in sales and earnings but reaffirmed its full-year outlook, with shares slipping 0.3% on Thursday.
Alphabet (GOOGL), a member of the “Magnificent Seven,” extended its gains from Wednesday’s trading as it secured a favorable outcome in a $1.7 billion case regarding online advertisements in the European Union.