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Summary
- The US stocks rebounded on Thursday even as the latest economic data was below expectations.
- The S&P 500 ended up 0.98 per cent at 3,787.38, while the Dow Jones settled higher by 300.19 points at 30,603.36. The tech-heavy NASDAQ Composite climbed 0.50 per cent to 13,337.16.
- While the American Airlines’ stock jumped 9.34 per cent, Apple shares slipped 3.50 per cent.
The US stocks rebounded on Thursday even as the latest economic data was below expectations. The benchmark equity indices recorded their worst decline in three months in the last session. While S&P 500 gave up its returns in 2021, Dow Jones posted its biggest fall since October on Wednesday, on concerns that speculative buying in leading stocks could force hedge funds to cut down on their equity holdings to raise cash. On Thursday, the Federal Open Market Committee had also pointed towards moderating growth in the coronavirus-struck US economy.
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The S&P 500 ended up 0.98 per cent at 3,787.38, while the Dow Jones Industrial Average settled higher by 300.19 points at 30,603.36. The tech-heavy NASDAQ Composite climbed 0.50 per cent to 13,337.16.
According to the first estimates of the US gross domestic product (GDP), the economy grew at 4 per cent in the fourth quarter, below the market’s expectations. The number of first-time filers for unemployment benefits rose less than expected last week. However, the jobless claims stood at 847,000 for the week ended 23 January 2021, falling below 900,000 for the first time in three weeks.
On Wednesday, the Dow Jones ended down 633.87 points at 30,303.17, while the S&P 500 dropped 2.57 per cent to 3,750.77. NASDAQ Composite settled 0.050 per cent down at 141.20.
Gainers and losers
The stock market recovery was mainly led by financials and materials. Technology and communication services also pitched in strongly. GameStop dipped 44.11 per cent amid multiple trading halts. AMC Entertainment slipped 56.57 per cent after surging 300 per cent in the last trading session. Bed Bath & Beyond fell 36.40 per cent.
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The stock of American Airlines jumped 9.34 per cent after the company reported better-than-expected quarterly results. Apple shares slipped 3.50 per cent even as the company recorded its largest revenue of US$111.4 billion in the first quarter of fiscal 2021. Tesla shares plunged 3.32 per cent after the electric car manufacturer posted weak results for the latest quarter.
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Global markets
In Europe, the Stoxx 600 index advanced 0.1 per cent, while Frankfurt’s Xetra Dax gained 0.3 per cent and London’s FTSE 100 benchmark declined 0.6 per cent. In Asia-Pacific, Japan’s Topix ended down 1.1 per cent, while Hong Kong’s Hang Seng index fell 2.6 per cent.
READ MORE: Market Update: ASX200 Witnessed a Sharp Fall on January 28, 2021
