Market Holds Its Ground as S&P 500 Marks Another Record

The stock market managed to extend its winning streak on Thursday, with the S&P 500 adding 0.3% to log both a new intraday record at 6,508.23 and a fresh closing high at 6,501.90. The Nasdaq Composite also gained 0.5%, finishing just shy of its own record close, while the Dow Jones Industrial Average posted a more modest 0.2% advance.

Momentum early in the session came from an upbeat revision to Q2 GDP and another low initial jobless claims report. Still, the morning was far from smooth sailing. An initial 2.5% slide in NVIDIA following its earnings release left the major indices in negative territory for a time. While both revenue and earnings topped expectations, the results were viewed as underwhelming compared to the company’s history of strong “beat-and-raise” guidance. A sharp sequential decline in H20 revenue due to export restrictions weighed on results, with no sales to China in Q2 and none expected in Q3. Even so, NVIDIA recovered from its lows, and the broader semiconductor space rebounded enough to lift the PHLX Semiconductor Index by 0.5%. The information technology sector, helped by strength in software names, added 0.7%.

Communication services emerged as the day’s best-performing sector, climbing 0.9% thanks to leadership from Alphabet and Meta Platforms. Energy also showed strength, rising 0.7% as crude oil settled nearly 1% higher at $64.62 per barrel. Consumer discretionary, financials, and industrials each captured modest gains. On the other side of the ledger, the most defensive corners of the market—utilities, consumer staples, and health care—were the biggest laggards. Real estate also finished lower, though losses across these sectors were modest.

Retail stocks proved to be another pocket of weakness. Earnings reports produced sharp reactions, with Best Buy and Dick’s Sporting Goods sliding while Five Below and Dollar General managed to buck the trend. The SPDR S&P Retail ETF ended down 0.9%, though that was still better than its session lows.

Market breadth remained healthy, with eight of eleven S&P 500 sectors closing higher. Importantly, strength in mega-cap names underpinned the overall move. The Vanguard Mega Cap Growth ETF rose 0.6%, outpacing the equal-weighted S&P 500, which slipped 0.1%.

Attention now shifts to Friday’s release of the PCE price index, the Fed’s preferred inflation gauge. Rate-cut expectations held steady, with markets pricing in an 87.2% chance of a quarter-point cut in September. Meanwhile, political drama around the Fed continued to simmer. Bloomberg reported that nominee Stephen Miran’s confirmation could be fast-tracked ahead of the September meeting, while former Fed Governor Lisa Cook filed a lawsuit challenging her dismissal, with an initial hearing scheduled for tomorrow.

For now, markets appear confident enough to keep pushing higher, with record-setting levels for the S&P 500 reinforcing investor optimism heading into the week’s final trading day.

Our FTInvest 11 portfolio index showed a touch of weakness today, slipping 0.09% to close at 842.62. After hovering around recent levels for most of the session, the index ultimately edged lower, unable to sustain upward momentum.

Still, despite today’s modest pullback, the portfolio remains comfortably positioned above its key 840 threshold, holding much of the ground gained during its recent rally. With performance staying within a tight range, the index continues to consolidate near record-high territory, leaving investors watchful for the next decisive move.