In a thrilling turn of events, US stocks surged on Thursday, propelling the S&P 500 (^GSPC) to a record closing high, reaching an impressive 5,745.39. This remarkable performance was fueled by a combination of strong economic data, noteworthy earnings reports from tech giants like Micron (MU), and renewed optimism surrounding China’s economic support measures.

The Dow Jones Industrial Average (^DJI) witnessed a 0.62% increase, and the tech-heavy Nasdaq Composite (^IXIC) climbed 0.6%, bolstered by a substantial jump in Micron's shares. Micron’s stock skyrocketed 15% following its fourth-quarter earnings report, which revealed a more robust-than-expected outlook, driven largely by the booming demand for its memory chips amid an AI revolution.

Robust Economic Indicators Provide Wind at Investor's Backs

Adding fuel to this bullish sentiment, the latest update from the US government showed a robust second quarter GDP growth rate of 3%, significantly surpassing Wall Street's expectations of 2.9%. Moreover, jobless claims for the week dipped unexpectedly to their lowest level in four months, with only 218,000 claims filed, indicating a buoyant labor market.

Meanwhile, China's commitment to ramping up fiscal spending and providing support to its slumping real estate sector has provided a fresh wave of optimism. Chinese stocks surged, with the CSI 300 index on track for its best weekly performance in a decade, further enriching the international investment landscape.

Tech Stocks Roar as Micron Proves Its Strength

The semiconductor sector reacted enthusiastically to Micron's report, with the PHLX Semiconductor Index (^SOX) jumping nearly 3.7%. Other significant players in the chip industry followed suit, with stocks like Advanced Micro Devices (AMD) and Qualcomm (QCOM) seeing increases of 3.4% and 2.4%, respectively. Even industry giant Nvidia (NVDA) enjoyed a modest rise, rejoining the coveted $3 trillion market cap club following recent turbulence.

Costco's Mixed Earnings Report and Shifting Mortgage Rates

In other news, Costco (COST) reported a mixed fourth-quarter earnings report, demonstrating adjusted earnings per share of $5.29, surpassing expectations, although its revenue slightly missed targets, coming in at $79.7 billion.

Additionally, the mortgage landscape witnessed a shift, with the 30-year fixed-rate mortgage rate dipping slightly to 6.08%, the lowest it has been in two years, offering a glimmer of hope for prospective homebuyers.

A Reassessing of Historical GDP Figures

One noteworthy revelation emerged from revisions to historical GDP data, which clarified that the US economy did not experience two consecutive quarters of contraction in 2022, a situation often termed a recession. This vital piece of information sheds light on the complexities and unpredictability of economic forecasting.

What’s Next? Mark Your Calendars!

As we move forward, investors eagerly await Friday's upcoming reading on the Personal Consumption Expenditures (PCE) index, which is closely monitored by the Federal Reserve as a primary inflation gauge.

With an optimistic economic outlook, record-high stocks, and a robust tech sector, the market appears poised for further growth. Keep an eye on these developments, as the financial landscape continues to evolve at a rapid pace—who knows what records will be shattered next!