 "US stock market: Wall Street indices rally after sharper-than-expected drop in jobless claims")
US stocks rallied on Thursday (August 8), with the Nasdaq and S&P 500 both climbing more than 2 percent after a sharper-than-expected drop in jobless claims calmed concerns about a rapidly weakening labour market.
The Dow Jones Industrial Average rose 683.04 points, or 1.76 percent, to close at 39,446.49. The S&P 500 gained 119.81 points, or 2.30 percent, to 5,319.31. The tech-heavy Nasdaq Composite added 464.22 points, or 2.87 percent, ending at 16,660.02.
Jobs data allays fears
Last Friday’s (August 2) report showing fewer-than-expected jobs created in July had stoked worries that the Federal Reserve might have delayed interest rate cuts too long, potentially steering the US economy toward a recession.
The most recent data has helped quell that anxiety among investors.
Market movers
Under Armour shares soared 19.2 per cent after the sports apparel maker surprised Wall Street with a first-quarter profit, bolstered by its efforts to streamline inventory and reduce promotions.
Eli Lilly’s stock surged 9.5 per cent after the pharmaceutical giant raised its annual profit forecast, with sales of its blockbuster weight-loss drug Zepbound surpassing $1 billion in a single quarter for the first time.
Big Tech stocks rebounded, recovering some of the steep losses suffered in recent weeks. Apple rose 1.7 per cent, while Meta Platforms jumped 4.2 per cent, driving significant gains across Wall Street.
Impact Shorts
More ShortsOn the downside, shares of Texas-based Bumble plummeted 29.2 per cent after the dating app’s third-quarter revenue forecast fell well short of analysts’ expectations.
Warner Bros. Discovery also faced sharp declines, with its shares dropping around nine per cent following a report of a nearly $10 billion quarterly loss, primarily due to a $9.1 billion write-down in the value of its cable network.
Bond market dynamics
In the bond market, the yield on the 10-year Treasury edged up to 3.99 per cent from 3.95 per cent on Wednesday (August 7), a sign of the ongoing volatility as investors assess the economic outlook.
With inputs from agencies
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