Stocks surged on Thursday as new labor market data rekindled investors’ confidence in the U.S. economy, offsetting a sharp market sell-off from earlier in the week. The Dow Jones Industrial Average soared 578 points, or 1.5%, while the S&P 500 gained 1.9%, and the Nasdaq Composite increased by 2.2%. Pharmaceutical giant Eli Lilly led the charge, surging nearly 9% after posting robust earnings and raising its annual outlook, driven by strong demand for its diabetes and obesity treatments, Mounjaro and Zepbound.
Previously beleaguered momentum stocks rebounded, with chipmakers Nvidia and Broadcom jumping 4% and 5.2%, respectively. Tech giants Meta Platforms increased by 3%, and Apple ticked up 1.3%. Crucially, weekly jobless claims fell to 233,000, below the forecasted 240,000, instilling confidence in the labor market’s strength. The 10-year Treasury yield edged up to 3.99%, a level observed before Friday’s disappointing July jobs report.
The markets were also buoyed by a weaker Japanese yen against the U.S. dollar. Earlier in the week, a surge in the yen had led to the unwinding of a popular carry trade among hedge funds, contributing to Monday’s stock market plunge.
Thursday’s rally comes as major indexes attempt to rebound from Monday’s rout, which marked their worst day since September 2022. Despite an aborted rally on Wednesday, concerns linger that the underlying issues from Monday’s sell-off remain unresolved.
“We’re trading a little bit on fundamentals today, but the market is still in assessment mode,” remarked Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. The gains highlight a day marked by cautious optimism as investors navigate ongoing market volatility.
Original Story https://www.cnbc.com/2024/08/07/stock-market-today-live-updates.html
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