Stock Market Surges as Jobless Claims Fall, Easing Fears About U.S. Economic Health: Today Stock Market Live Updates
U.S. stocks jump as jobless claims fall, easing fears about the economy. Stay updated with live coverage of the market’s reaction to this key data
U.S. stocks saw a solid boost on Thursday after a drop in weekly jobless claims eased concerns about the health of the labor market. The S&P 500 (^GSPC) went up by nearly 1%, the Nasdaq (^IXIC) rose by more than 1%, and the Dow Jones Industrial Average (^DJI) increased by about 1.2%.
Typically, jobless claims reports don’t draw much attention, but this one became a focal point as investors closely watched labor market data. Last week's weaker-than-expected jobs report had triggered recent market declines, making this update particularly important.
The latest government figures showed that initial jobless claims fell to 233,000 for the week ending August 3, down from 250,000 the previous week. This number was better than economists had forecast.
Also Read: U.S. Jobless Claims Drop Unexpectedly, Easing Concerns About Labor Market Stability
The unexpected decline in jobless claims gave a much-needed boost to Thursday’s trading. On Wednesday, an attempted market recovery had fizzled out, leading to significant losses by the close. The market has been experiencing a turbulent week, with sharp ups and downs continuing to unsettle investors.
In specific stock movements, Nvidia (NVDA), a leading player in AI and part of the "Magnificent 7" group of tech giants, was in the spotlight again. The stock had a rough day, dropping 5%, but managed to show slight gains in early Thursday trading.
Eli Lilly (LLY) was another big mover, with its shares soaring more than 10%. The pharmaceutical company raised its annual revenue and profit forecasts, thanks to strong sales of its weight-loss drug, making it a standout performer on the earnings front.
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Key Moments
- U.S. market rises after jobless claims fall.
- S&P 500, Nasdaq, and Dow all up.
- Nvidia's stock remained volatile, with slight early gains.
- Eli Lilly's shares soared over 10% on strong weight-loss drug sales.
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08 Aug 2024 10:20 AM
Unexpected Drop in Jobless Claims Calms U.S. Economic WorriesInitial jobless claims experienced a surprising decline last week, easing concerns about a potential slowdown in the U.S. job market and broader economy.
The latest data from the Department of Labor revealed that 233,000 people filed for unemployment benefits for the week ending August 3. This figure is notably lower than the 250,000 claims reported the previous week and beneath the 240,000 forecasted by analysts. The drop comes after claims had reached their highest level since August 2023 in the week ending July 27.
Conversely, the number of people continuing to claim unemployment benefits rose to 1.875 million for the week ending July 27. This is the highest number since November 2021 and represents an increase of 6,000 from the week before.
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08 Aug 2024 10:21 AM
Stocks Start Strong as Jobless Claims Ease Recession Fears
U.S. stocks opened higher on Thursday, buoyed by a significant drop in initial jobless claims, which alleviated concerns about a potential recession.
The S&P 500 (^GSPC) climbed roughly 1%, the Nasdaq (^IXIC) surged over 1.4%, and the Dow Jones Industrial Average (^DJI) increased by about 0.4%.
This positive start followed a disappointing day on Wednesday, when stocks fell significantly after an initial rebound attempt failed, erasing earlier gains.
The decrease in weekly initial jobless claims, which was larger than expected, reassured investors that the labor market might be stronger than previously feared. This comes after last week's weaker-than-expected non-farm payrolls report, which had contributed to recent market declines.
Tech stocks, which have been at the forefront of recent market volatility, were also in focus. Nvidia (NVDA), a major player in AI chips, opened higher after a more than 5% drop on Wednesday.
In early trading, sectors like Technology (S&P 500 Tech ETF - XLK), Industrials (XLI), and Healthcare (XLV) led the way.
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08 Aug 2024 10:22 AM
S&P 500 and Nasdaq Hit Session Peaks as Stocks Surge
On Thursday morning, the S&P 500 (^GSPC) and Nasdaq (^IXIC) soared to session highs, each climbing approximately 1.6% by 10 a.m. ET.
The Dow Jones Industrial Average (^DJI) also enjoyed a notable increase, rising around 1.3%.
This positive momentum came after a previous session where an initial recovery attempt failed. The boost in stock prices was driven by the latest jobless claims data, which reassured investors about the stability of the labor market and provided a glimmer of hope for a more favorable economic outlook.
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08 Aug 2024 10:36 AM
Nasdaq Climbs 2% as Tech Shares Lead Market Recovery
On Thursday, the Nasdaq (^IXIC) soared by 2%, powered by a surge in technology stocks that led the market rebound.
The S&P 500 Technology Select Sector ETF (XLK) advanced more than 2%, while the Healthcare sector (XLV) saw an increase of nearly 2%.
The Nasdaq 100 (^NDX) saw all seven leading tech stocks, dubbed the "Magnificent Seven," make notable gains, fueling the rally in tech-driven stocks.
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08 Aug 2024 11:03 AM
Bitcoin Rises 4% to $58,000 as Market Recovers
Bitcoin (BTC-USD) has climbed 4% in the past 24 hours, reaching around $58,000 per coin.
This increase reflects a broader market rebound, with riskier assets like cryptocurrencies gaining ground. The rise follows a tough period for Bitcoin, including its worst week since the collapse of Sam Bankman-Fried’s FTX exchange in November 2022.
Investors are showing renewed interest as market conditions improve. Positive news, such as easing regulatory concerns and growing institutional interest, is helping Bitcoin recover and stabilize, boosting overall confidence in the crypto market.
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08 Aug 2024 12:15 PM
Goldman Sachs Foresees Home Prices Rising as Mortgage Rates Drop
Goldman Sachs is updating its forecast for home prices, now expecting a 4.5% increase in 2024, up from 4.2%. This shift comes as mortgage rates decrease.
Vinay Viswanathan, a Goldman strategist, explains that lower mortgage rates are making home buying more affordable. Last week, the average rate for a 30-year fixed mortgage hit its lowest point since early February. The Federal Reserve is also expected to cut interest rates starting in September, which has already helped lower mortgage rates.
These lower rates are expected to boost home prices further. Although mortgage applications haven’t yet surged, Viswanathan believes that as rates stay low, more people will be able to buy homes, driving prices up.
Home prices hit a record high in May but grew more slowly compared to the previous month, according to the S&P CoreLogic Case-Shiller Index. Despite higher home prices and affordability issues, the shortage of available homes has pushed prices even higher. With the anticipated drop in mortgage rates, Goldman Sachs predicts home prices will continue to rise.
