Indexes rally, close higher after US jobless claims data….
U.S. stocks jumped on Thursday, with all three indexes closing sharply higher after jobless claims fell more than expected in the latest week, soothing worries the labor market was weakening too quickly. All of the S&P 500 sectors rose, led by gains in S&P 500 technology <.SPLRCT> and communication services <.SPLRCL>. Among the S&P 500’s biggest gainers, shares of Eli Lilly surged after the drugmaker raised its annual profit forecast, and sales of its popular weight-loss drug Zep bound crossed $1 billion for the first time in a quarter.
Stocks had sold off sharply after last week’s July U.S. jobs report sparked fears of a potential U.S. recession. Traders also cited an unwinding of positions of carry trades, where investors borrow money from economies with low interest rates to fund their bets in high-yielding assets elsewhere.
According to preliminary data, the S&P 500 <.SPX> gained 121.32 points, or 2.30%, to end at 5,320.82 points, while the Nasdaq Composite <.IXIC> gained 464.22 points, or 2.87%, to 16,660.02. The Dow Jones Industrial Average <.DJI> rose 689.45 points, or 1.78%, to 39,452.90. The CBOE Volatility index, Wall Street’s fear gauge, was down on Thursday. Under Armour surged after the sports apparel maker posted a surprise first-quarter profit, benefiting from its efforts to cut inventory and promotions.
Reporting By Caroline Valetkevitch. Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Varun H K, Shinjini Ganguli, Saumyadeb Chakrabarty and David Gregorio.
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