Stock Market Today: Live Updates

Stocks rose Thursday as Wall Street tried to recover from the worst session since 2022 for the S&P 500 and Nasdaq Composite.

THE Dow Jones Industrial Average outperformed, up 380 pointsor 1%, like IBM rose more than 5% for its best day since January. S&P 500 increased by 0.7%, while the Nasdaq added 0.5%. Russell 2000 gained 2% as investors continued their rotation into small caps.

Investors continued to dump some of 2024's winning tech names for a second straight day. Advanced Micro Devices fell 2%, while mega-cap stocks Meta-platforms, Microsoft And Alphabet fell by about 1% each.

“There’s a changing of the guard on Wall Street. The AI ​​stocks that led the way are now leading the way,” said Adam Sarhan, CEO of 50 Park Investments, adding that such moves are not uncommon during a “big mini rotation” in the bull market.

“In a bull market, one sector takes the lead, then pauses, corrects and passes the baton,” he explained. “Think of it as a relay race to another sector.”

Investors also weighed a second-quarter GDP report that showed Economy grows by 2.8%much more than expected. Economists surveyed by Dow Jones had expected growth of 2.1%.

Wall Street is coming off a session of declines, with the S&P 500 and Nasdaq suffering their biggest daily declines in more than a year. Those losses were fueled by disappointing tech results.

Investors are now viewing the recent declines as a sign of a long-overdue correction in an overbought market, which is now seeing a rotation out of mega-cap tech stocks and into small-cap stocks and more cyclical sectors.

Ford engine Shares fell 16% and headed toward their worst day since 2009 Second-quarter profits were well below analysts' expectations.Chipotle fell 3% despite beating expectations for profit and revenue, while ServiceNow jumped 13% on better-than-expected earnings and is headed for its best day since 2016.