Stock market today: Stocks surge after jobs data eases concerns over US economy
08/08/2024 20:42
Wall Street saw a comeback attempt falter on Wednesday, as stocks faded into the close and ended up with sizable declines
US stocks took a leap higher Thursday after weekly initial jobless claims fell more than forecast in a reassuring update on the health of the US labor market. The S&P 500 (^GSPC) rose almost 1%, while the tech-heavy Nasdaq (^IXIC) jumped roughly 1%. The Dow Jones Industrial Average (^DJI) was up about 0.8%.
The normally routine jobless claim update found itself in the spotlight Thursday amid increasing scrutiny on the labor market, as last week's sluggish non-farm payrolls update served as one of the earliest catalysts of the recent declines.
Government data showed that there were 233,000 initial jobless claims in the week ending Aug. 3, down from 250,000 last week and fewer than what economists had forecast.
The number added a fresh jolt into Thursday's trading. Wall Street saw a comeback attempt falter on Wednesday, as stocks faded into the close and ended up with sizable declines. The moves — from big gains to significant losses — continued a turbulent stretch that has pervaded in markets for much of the past week.
In individual movers, "Magnificent 7" stalwart and AI giant Nvidia (NVDA) is in focus after another back-and-forth day left its stock down another 5%. The stock rose slightly in early trading.
Eli Lilly (LLY) was the highlight on the earnings docket. Shares of the pharmaceutical soared over 10% after boosting its annual revenue and profit forecasts on strong weight-loss drug sales.
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Stocks open higher as jobless claims ease worries over US economy
US stocks opened higher Thursday after initial jobless claims fell by the most in nearly a year, helping calm worries of a possible recession.
The S&P 500 (^GSPC) rose about 1%, while those on the tech-heavy Nasdaq (^IXIC jumped more than 1.4%. The Dow Jones Industrial Average (^DJI) was up about 0.4%.
Stocks rose after an attempted comeback fell short Wednesday, when the major averages sank during the session, erasing earlier gains.
Weekly initial jobless claims fell more than forecast. Investors took it as a sign that the labor market may not be in as bad shape as feared. Last week's sluggish non-farm payrolls update served as one of the earliest catalysts of the recent declines.
Investors were closely watching tech stocks which have led the recent market declines. AI chip heavyweight (NVDA) opened higher after losing more than 5% on Wednesday.
The S&P 500 Tech ETF (XLK), along with Industrials (XLI) and Healthcare (XLV), were the leading sectors in early trading.
Initial jobless claims fall more than forecast, easing some fears about US labor market
Initial filings for unemployment insurance fell more than expected last week, offering some relief to markets worried about further signs of deterioration in the US labor market and the broader economy.
New data from the Department of Labor showed there were 233,000 initial jobless claims filed in the week ending August 3, down from 250,000 the week prior and below the 240,000 economists had expected. In the week ending July 27, jobless claims hit their highest level since August 2023.
Meanwhile, the number of continuing applications for unemployment benefits hit its highest level since November 2021, with 1.875 million claims filed in the week ending July 27, up 6,000 from the week prior.
