US stocks rebound from three-day losing streak | Financial market news

All three major US stock indices posted strong gains, with the Nasdaq, weighed by Tesla Inc, taking over.

Wall Street ended sharply higher at the end of a large rally on Thursday, rebounding after three straight days of selling on bullish labor market data.

All three major US stock indices posted strong gains, with the Nasdaq, weighed by Tesla Inc, taking over. Meanwhile, cyclical stocks enjoyed the biggest gains.

The Dow Jones Industrial Average rose 433.79 points, or 1.29 percent, to 34,021.45; the S&P 500 gained 49.46 points, or 1.22%, to 4,112.5; and the Nasdaq Composite Index added 93.31 points, or 0.72 percent, to close at 13,124.99.

Recent economic data has raised fears of inflation as scarcity of materials and workers threatens to push up prices in the face of a boom in demand.

“If it’s a run, supply chains always tie their shoes,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York City. “But they will respond to demand fairly quickly.”

But on Thursday, investors appeared to be focusing on the half-full glass side of the demand / supply equation.

This has been demonstrated by the outperformance of small caps, chips and transports, economically sensitive stocks that are expected to win as the United States emerges from the pandemic coronavirus recession.

“The sectors and stocks that were hit the hardest by yesterday’s selling rebounded strongly today as economic growth is expected to remain strong throughout the year and any inflation is likely to be temporary,” he said. Carter added.

New unemployment insurance claims continue to decline, according to US Department of Labor (DOL) unemployment claims data which hit a 14-month low.

DOL data also showed producer prices inflated last month, building on the spike in inflation narrative from Wednesday’s Consumer Price Report.

“The inflation boogeyman is back at just the right time,” Carter said. “And will continue to scare the markets for months to come.”

But the price hike was widely anticipated, and the US Federal Reserve has repeatedly given assurances that it does not anticipate these spikes will turn into sustained inflation in the long run.

Energy stocks lost ground, weighed down by lower crude prices.

The owner of the dating app Bumble Inc has fallen below its initial public offering price as investors remain cautious about how quickly users will return to in-person meetings.

Walt Disney Co shares hovered throughout the session ahead of the company’s quarterly results, expected after the closing bell.

Boeing Co moved forward after obtaining approval from U.S. regulators for a solution to an electrical grounding problem.

Tesla continued his slide after boss Elon Musk doubled down on his sudden rejection of the Bitcoin cryptocurrency.

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