Wall Street rises as small caps advance, megacaps recover ground
US economic growth regains steam in Q2; inflation slows
Ford slumps as higher costs, EV unit dent profit growth
IBM gets boost from software, AI demand, as consulting slips
Gains for small-cap indexes Russell 2000 and S&P Small Cap 600
Indexes up: Dow 0.9%, S&P 0.59%, Nasdaq 0.57%
Updated to 2:02 p.m. ET/1802 GMT
By Lisa Pauline Mattackal and David French
July 25 (Reuters) - Wall Street's main indexes climbed on Thursday, a day after a tech-triggered sell-off, with small-cap stocks and stronger-than-expected GDP data providing support.
The small-cap Russell 2000 .RUT jumped 2.3%, on track to fully recoup Wednesday's broad losses. The Dow .DJI led the three main benchmarks in percentage gains as investors reassessedtheir recent flight to underperforming sectors.
Most megacap stocks recovered from a shaky start and were in positive territory at mid-afternoon. Amazon.com<AMZN.O>, AppleAAPL.O and NvidiaNVDA.O all climbed between 0.8% and 1.2%.
While Alphabet's GOOGL.O shares fell0.8%, Tesla TSLA.O rose4.5%. Lackluster earnings from the Google parent and the electric vehicle maker had pummeled the so-called Magnificent Seven group of tech stocks on Wednesday, prompting the Nasdaq .IXIC and S&P 500 .SPX to log their worst day since 2022.
Gross domestic product data provided support, showingthe U.S. economy expanded 2.8% in the second quarter versus an estimate of 2%. Inflation subsided, leaving expectations of a September Federal Reserve interest rate cut intact.
"We've been calling for a Goldilocks recovery, expecting the economy to hold up, and this report shows that the economy is actually quite strong," said Brian Klimke, chief market strategist at Cetera Investment Management. "The Fed doesn't necessarily need to kill growth; they're really looking to just kill inflation."
Bets ona 25-basis-point cut by September stood at 85.8%, from around 78% prior to Thursday's data, CME's FedWatch Tool showed.
Market participants are also pricing in at least two rate cuts by December, according to LSEG data.
Investors now awaitpersonal consumption expenditures price data on Friday to confirm bets of an early start to Fedrate cuts, after the recent trend of easing inflation and some labor market weakness.
While heavyweight stocks havepowered the market to all-time highs this year, Wednesday's sell-off reinforcedfears that these stocks might be over-stretched and are in for more turbulence.
This concern has driven value investors, speeding up their rotation into smaller-cap stocks and other sectors outside megacap technology.
The S&P Small Cap 600 .SPCY rose 2.2% on Thursday.
As of 2:02 p.m. ET, the S&P 500 .SPX gained 31.81 points, or 0.59%, at 5,458.94 points, while the Nasdaq Composite .IXIC rose 103.14 points, or 0.57%, to 17,445.55. The Dow Jones Industrial Average .DJI advanced 357.37 points, or 0.90%, to 40,211.24.
Among earnings-driven moves, IBM IBM.N shares jumped 5.8%, also boosting the blue-chip Dow, after the tech companybeat estimates for second-quarter revenue and raisedthe annual growth forecast for its software business.
American Airlines AAL.O rose 4.1%, reversing premarket losses after cutting its annual profit forecast. Southwest Airlines LUV.N climbed 6.8% after saying it wouldimplement changes including ending open seating and offering seats with extra legroom.
Advances by airlines and logistics firms, of 6% for Old Dominion <ODFL.O> and 6.4% for J B HuntJBHT.O, helped the Dow Jones Transportation Average .DJT gain 2.5%.
FordF.N slumped 17.3% after the automaker's second-quarter adjusted profit missed estimates by a wide margin.Edwards Lifesciences EW.N tumbled 29.6% after it missed second-quarter revenue estimates.
S&P500 breaks calm streak with 2%+ drop https://tmsnrt.rs/3A8anwg
Reporting by Ankika Biswas, Lisa Pauline Mattackal and Medha Singh in Bengaluru and David French in New York; Editing by Savio D'Souza, Saumyadeb Chakrabarty, Pooja Desai and Richard Chang
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
