Highlights
Stocks advanced Thursday as weekly employment figures tamped down recession fears. The Dow Jones industrial average gained 1.8 percent, the S&P 500 rose 2.3 percent, and Nasdaq rallied 2.9 percent. Bond yields, the dollar and oil prices all rose.
Thursday's news of unexpectedly low weekly jobless claims eased concerns about the labor market raised by last week's much weaker than expected monthly employment report. Megacaps including Alphabet, Amazon, Apple, Meta and Microsoft saw strong gains on bargain-hunting to lead the market higher along with chipmakers including AI champion Nvidia, Broadcom and AMD.
Other strong sectors included pharma, with a boost from Eli Lilly after an earnings beat and better guidance, plus chemicals, retail, airlines, cruise lines, home builders and credit cards, Lagging were health care services, entertainment, telecom, utilities and beverages.
Many investors are viewing the market's steep losses early in the week as a healthy correction in an ongoing bull market and they bought the dip. With the focus on prospects for ongoing growth, traders are keying on retail sales figures due next week to confirm the view that consumers will continue to underpin the economy. Early expectations center on a 0.5 percent gain in retail sales on the month. Walmart and other other big retailers are also scheduled to issue quarterly reports next week, with commentary on consumer spending.
Thursday's news of unexpectedly low weekly jobless claims eased concerns about the labor market raised by last week's much weaker than expected monthly employment report. Megacaps including Alphabet, Amazon, Apple, Meta and Microsoft saw strong gains on bargain-hunting to lead the market higher along with chipmakers including AI champion Nvidia, Broadcom and AMD.
Other strong sectors included pharma, with a boost from Eli Lilly after an earnings beat and better guidance, plus chemicals, retail, airlines, cruise lines, home builders and credit cards, Lagging were health care services, entertainment, telecom, utilities and beverages.
Many investors are viewing the market's steep losses early in the week as a healthy correction in an ongoing bull market and they bought the dip. With the focus on prospects for ongoing growth, traders are keying on retail sales figures due next week to confirm the view that consumers will continue to underpin the economy. Early expectations center on a 0.5 percent gain in retail sales on the month. Walmart and other other big retailers are also scheduled to issue quarterly reports next week, with commentary on consumer spending.
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.
