UK Finance Minister calls for promoting economic growth

With the global financial market rising again, the US stock market has reached a new historical high. The S&P 500 index rose 0.4%, hitting a historic high for the third time this week and for the 42nd time this year. The Dow Jones Industrial Average rose 260 points, or 0.6%, closing slightly below its historical high, while the Nasdaq Composite Index rose 0.6%.

Firstly, Micron Technology led the gains with a 14.7% increase, as this computer memory and storage device manufacturer's latest quarterly profit exceeded analysts' expectations. The company benefits from sales related to artificial intelligence technology, and the prosperity of this field has driven some stocks to astonishing heights. The stock price of electronic manufacturer Jabil rose 11.7% after the company reported higher than expected profits and revenue. The company also announced plans to repurchase up to $1 billion worth of stocks and inject cash into shareholders. But the decline in stock prices of ExxonMobil and other oil and gas companies has suppressed market gains. The Financial Times reported through sources that Saudi Arabia is preparing to abandon its unofficial crude oil price target of $100 per barrel, leading to a decline in oil prices.

Secondly, the US benchmark crude oil price fell 2.9% per barrel to close at $67.67, while the international benchmark Brent crude oil price fell 2.5% to close at $71.60. This dragged down ExxonMobil's stock price by 1.7%, making it one of the biggest drag factors in the S&P 500 index, while ConocoPhillips' stock price fell by 3.2%.

The biggest decline in the S&P 500 index was in Supermicro Computer, which gave up some of its gains after more than doubling during last year's artificial intelligence boom. The Wall Street Journal reported that the US Department of Justice is investigating sellers of servers and storage systems, causing their stock prices to drop by 12.2%. The company declined to comment. Renowned investor Hindenburg Research released a report in August accusing the company of accounting red flags and other issues, with CEO Liang Jianhou stating that the report contained false or inaccurate statements. Overall, the S&P 500 index rose 23.11 points to 5745.37 points. The Dow Jones Industrial Average rose 260.36 points to 42175.11, while the Nasdaq Composite Index rose 108.09 points to 18190.29.

On the other hand, the number of unemployment claims in the United States has decreased, which is the latest sign that the overall layoff rate in the economy is still relatively low. Another report states that the overall annual economic growth rate in the United States during spring was 3%, consistent with previous estimates. This is a steady growth rate. Wall Street's hope is a financial nirvana, where the US economy can maintain stable growth and sustain corporate profits while the Federal Reserve continues to lower interest rates. The Federal Reserve significantly adjusted its interest rate setting method last week. For many years, the Fed has maintained high interest rates in hopes of curbing high inflation, and now it is cutting interest rates to alleviate the burden on the US economy. Interest rate cuts not only reduce the cost of borrowing money to buy a house, car, or shopping with a credit card, but also increase the prices of various investments.

Overall, as the cumulative effect of the Federal Reserve's past interest rate hikes gradually becomes apparent, the job market may further weaken. The Federal Reserve has maintained its main interest rate at a 20-year high, while US employers have begun to slow down their hiring pace. Many traders on Wall Street are betting that the Fed's interest rate cuts this year will exceed what officials have hinted at. But if the economic report remains strong and continues to exceed expectations, the Federal Reserve may not cut interest rates as investors are betting. This may make critics believe that the already overvalued US stock market looks even more expensive.