Highlights
Strength in megacaps lifted equities Thursday with the S&P 500 returning to bull market territory with a gain of 20 percent from the October lows. Growth stocks got a lift from declining market interest rates after unexpectedly high US jobless claims figures.
The Dow industrials rose 0.5 percent, the S&P 500 gained 0.6 percent, and the Nasdaq rallied 1.0 percent. US Treasury yields fell, the dollar rose, and oil prices dropped.
News that jobless claims popped up to 261,000 in the latest week from an upwardly-revised 233,000 in the previous week suggested to some that the job market has softened. That bolstered expectations the Federal Reserve will not raise interest rates at its policy meeting next week, which have the bond market a lift.
Strength in big technology and consumer discretionary shares lifted the major averages again, paced by strong gains in Nvidia, Amazon, and Tesla. Consumer staples outperformed too.
On the downside, energy, real estate, materials, and financials lagged. Energy stocks were hurt as oil prices dropped on reports, subsequently denied, that the US and Iran were moving toward an accord that would allow the return of Iranian oil to global markets.
The Dow industrials rose 0.5 percent, the S&P 500 gained 0.6 percent, and the Nasdaq rallied 1.0 percent. US Treasury yields fell, the dollar rose, and oil prices dropped.
News that jobless claims popped up to 261,000 in the latest week from an upwardly-revised 233,000 in the previous week suggested to some that the job market has softened. That bolstered expectations the Federal Reserve will not raise interest rates at its policy meeting next week, which have the bond market a lift.
Strength in big technology and consumer discretionary shares lifted the major averages again, paced by strong gains in Nvidia, Amazon, and Tesla. Consumer staples outperformed too.
On the downside, energy, real estate, materials, and financials lagged. Energy stocks were hurt as oil prices dropped on reports, subsequently denied, that the US and Iran were moving toward an accord that would allow the return of Iranian oil to global markets.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
