2024-08-08 22:30:13
Today’s session closed with an impressive rise Wall Street after new US jobs data boosted investor confidence in the US economy following a sharp sell off earlier in the week.
The index S&P 500 rose 2.3% to close at 5,319.31 points, the best daily performance since November 2022. The Dow Jones rose 683.04 points or 1.76% to close at 39,446.49 points. THE Nasdaq strengthened 2.87% to 16,660.02 points, while the Nasdaq 100 showed gains of 3.1%.
Drugmaker Eli Lilly rose about 9.5 percent after it reported better-than-expected earnings and revised upward its full-year outlook amid strong demand for diabetes drug Mounjaro and obesity drug Zepbound.
Chipmakers Nvidia and Broadcom both rose more than 6 percent. Meta Platforms gained 4.2% and Apple 1.7%.
The latest data on jobless claims showed a smaller-than-expected increase, somewhat allaying concerns about the strength of the labor market. Claims for unemployment benefits last week totaled 233,000, down 17,000 from the previous week and below forecasts for 240,000, according to Labor Department data.
The yield on the U.S. 10-year Treasury note climbed back above 4 percent after the labor market data, the level it was at before disappointing July U.S. jobs data sent markets reeling.
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The investment climate improved and the weaker Japanese currency against the dollar. The yen’s rise was fueled by selling positions in the carry trade.
“This is the recovery that investors have been waiting for. But to make sure the recovery is back, they need more positive news,” said SoFi strategist Liz Young.
Steve Sosnick of Interactive Brokers poses this question to investors: “Are you the same ones who were calling for an emergency 50 basis point rate cut from the Fed on Monday? Can we say today’s data allayed recession fears? Absolutely yes. Can we say that investors bought the lows and are looking for a rally? Absolutely yes,” he emphasized.
From the beginning of the week to today, however, all three major stock market indices remain in the red. The S&P 500 is down 0.5%, while the Dow Jones and Nasdaq are down about 0.6% each.