Major US indices rallied yesterday, led by gains in chip stocks, according to News on AIR. The Nasdaq Composite Index jumped 2.8 per cent, ending a six-day losing streak. The S&P 500 rose almost 1.7 per cent and the Dow Jones Industrial Average settled 1.2 per cent higher.
Market Rally Led by Chip Stocks
Gains in chip stocks powered the advance across the three major US benchmarks, the broadcast reported. The Nasdaq Composite's 2.8 per cent jump was the largest among the indices and snapped a six-day decline. The S&P 500 added nearly 1.7 per cent, while the Dow Jones Industrial Average closed 1.2 per cent higher.
| Index | Percentage Change | Key Detail |
|---|---|---|
| Nasdaq Composite | +2.8% | Ended six-day losing streak |
| S&P 500 | +1.7% (almost) | Rose nearly 1.7 per cent |
| Dow Jones Industrial Average | +1.2% | Settled higher |
GDP Growth Slows in Second Quarter
Separately, the US economy grew at a slower pace in the second quarter this year, according to the advance estimate released by the US Bureau of Economic Analysis (BEA). Real gross domestic product increased at an annual rate of 1.5 per cent, down from 2.1 per cent in the first quarter.
The comparison between the two quarters is summarised below:
| Quarter | Real GDP (Annual Rate) |
|---|---|
| Q1 2026 | 2.1% |
| Q2 2026 | 1.5% |
PCE Inflation Cools in June
A separate report by the BEA showed that the personal consumption expenditures (PCE) price index rose 3.7 per cent in June on an annual basis, easing from a 4.1 per cent increase in May. On a monthly basis, the PCE price index contracted by 0.1 per cent in June, following a rise of 0.5 per cent in May.
| Period | Annual Change | Monthly Change |
|---|---|---|
| May 2026 | +4.1% | +0.5% |
| June 2026 | +3.7% | -0.1% |
Market and Macro Data Points
The BEA's advance GDP estimate and the June PCE inflation figures were released alongside the stock market rally, according to News on AIR. The data show:
- The US economy expanded at a slower annualised pace of 1.5 per cent in Q2 2026, versus 2.1 per cent in Q1 2026.
- The PCE price index rose 3.7 per cent year-on-year in June, down from 4.1 per cent in May.
- On a month-on-month basis, the PCE price index fell 0.1 per cent in June, compared with a 0.5 per cent gain in May.
- The Nasdaq Composite gained 2.8 per cent, the S&P 500 rose almost 1.7 per cent, and the Dow Jones Industrial Average settled 1.2 per cent higher.
These figures represent the latest official data from the BEA and the most recent market session performance, as reported by News on AIR. The moderation in second-quarter GDP growth and the cooling of the PCE price index in June, alongside the chip-led rally in US equities, are the key data points for finance executives and investors tracking the US economy and capital markets.
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