Wall Street shares rose on Thursday as tech stocks rose, but after new data suggested a cooling in the U.S. labor market and confirmed support for the Federal Reserve to pause rate hikes next week. U.S. Treasuries rose.
The benchmark S&P 500 index closed 0.6% higher, pushing blue-chip indices into bull market territory. A bull market is defined as a rise of 20% or more from its last low last October.
investors are back technologyThe tech-heavy Nasdaq Composite rose 1%, while the NYSE Fang+ index, which consists of 10 heavily traded tech stocks, rose 2%, reversing its decline from the previous session.
“Revenues will decline, but where will the decline be less? It’s usually growth companies, quality, possibly income, definitely large caps,” said Senior Multi-Asset Strategist, State Street Global Markets. Mariya Byitmane said.
Benefits US stocks It also said the Fed would refrain from raising rates at next week’s meeting after the latest data showed that the number of new applications for unemployment assistance rose to 261,000, the highest level since October 2021. I had high hopes.
“Alone, the rise in first claims won’t sway the decision, but combined with rising unemployment in May and signs of subdued inflation from the latest PMI report, the Fed will keep rates on hold in next week’s decision. Most likely,” said Comerica chief economist Bill Adams.
Interest-rate-sensitive two-year government bond yields fell 0.03 percentage points to 4.52%, boosting insurance claims and sovereign debt. The 10-year bond yield fell 0.06 percentage points to 3.72%. Yields on bonds fall when prices rise.
The dollar fell 0.7% against the country’s basket of six currencies to a two-week low.
European markets traded cautiously as traders tried to gauge the next policy move from the European Central Bank, which is due to announce a decision on interest rates next Thursday.
The Stoxx 600 index across the European region ended flat, while Germany’s Dax index rose 0.2% and France’s Cac 40 index rose 0.3%.
Downgraded data released today showed the eurozone economy contracted in the past two quarters, with eurozone output down 0.1% quarterly in both three months.
The latest figures are weighing on ECB policymakers, who have previously suggested that the resilience of the economy gives room to raise deposit rates above the current 3.25% at the next Governing Council meeting. It is possible that
Asian stocks rose, with Hong Kong’s Hang Seng Index up 0.3% and China’s CSI 300 Index up 0.8%. Japan’s TOPIX bucked the trend, dropping 0.7%.
Meanwhile, oil prices fell, with the international benchmark Brent crude dropping 1.3% to $75.96 a barrel and the US benchmark West Texas Intermediate dropping 1.7% to $71.29 a barrel. became.
https://www.ft.com/content/e02ecc49-4a97-47f6-8a7b-5bef1c71e55d Tech advances, rising unemployment claims boost U.S. stocks