Stocks Surge as Positive Jobless Claims Data Boosts Market Confidence

August 09, 2024 10:15 AM PDT | By Team Kalkine Media

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Stocks Surge as Positive Jobless Claims Data Boosts Market Confidence — Image source: shutterstock

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Headlines

US stock indexes experienced a significant rise on Thursday due to positive jobless claims data.

The S&P 500 had its best day since 2022, with the Dow and Nasdaq also seeing substantial gains.

The information technology sector and pharmaceuticals giant Eli Lilly were notable contributors to the stock market's rise.

S&P 500 Reaches New Heights Following Positive Labor Market Data

US stock indexes soared on Thursday as new jobless claims data boosted confidence in the labor market and economy. The Dow surged by 683 points, while the S&P 500 and Nasdaq (NASDAQ:NDAQ) saw increases of 2.3% and 2.8%, respectively, marking the S&P 500's best day since November 2022.

The S&P 500's impressive performance helped recover losses from earlier in the week. The 10-year Treasury yield rose by two basis points to 3.98%, after fluctuating throughout the day.

A significant factor in Thursday's gains was a notable drop in weekly jobless claims, which fell by 17,000 to 233,000, marking the largest decline in nearly a year. This data alleviated fears of an imminent recession, which had been sparked by the previous week's disappointing nonfarm payroll report for July.

The information technology sector led the S&P 500's rise with a 3.5% increase, and communication services also posted strong gains. Pharmaceuticals giant Eli Lilly (NYSE:LLY) soared by 14% after reporting robust earnings for the most recent quarter, driven by high demand for its GLP-1 weight loss drugs. The company's quarterly revenue of $11.30 billion surpassed analyst estimates of $9.98 billion, and it raised its annual revenue outlook. CEO David Ricks noted the high demand for the drug despite minimal promotion efforts.

Looking ahead, the latest inflation data, including July's consumer price index scheduled for release on August 14, will be closely watched as a key indicator for future Federal Reserve policy decisions.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Thursday:

- S&P 500: 5,319.30, up 2.3%

- Dow Jones Industrial Average: 39,446.82, up 1.76% (+683.30 points)

- Nasdaq Composite: 16,660.02, up 2.87%

Additional Market Highlights:

- The S&P 500 has an 83% accuracy rate in predicting the outcome of presidential elections.

- Palantir's stock surged after announcing a partnership with Microsoft to provide AI tools to US defense and intelligence agencies.

- The mortgage lock-in effect reduced the US economy by $20 billion last year.

- China's imports last month increased by 7.2% year-over-year as the country stockpiled technology ahead of trade restrictions, according to BofA.

Commodities, Bonds, and Cryptocurrency:

- West Texas Intermediate crude oil rose by 1% to $76.04 a barrel.

- Brent crude, the international benchmark, increased by 0.9% to $79.02 a barrel.

- Gold traded higher at $2,463.30.

- The 10-year Treasury yield increased by two basis points to 3.98%.

- Bitcoin rose by 8% to $59,549.

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