Indexes climbed on Thursday as investors gained more confidence in the economy after new data showed a drop in weekly jobless claims.
US stocks rallied on Thursday, clawing back losses from the rout earlier in the week as new jobs data boosted investors’ confidence in the labor market and the economy.
The S&P 500 jumped 2.3% for its best day since November 2022. The Nasdaq Composite spiked 2.8% and the Dow Jones Industrial Average.
The 10-year Treasury yield ticked up two basis points to 3.98%, dipping slightly throughout the day after jumping above 4% earlier in the day.
Fueling Thursday’s gain was a drop in weekly jobless claims that soothed fears of an imminent recession after last week’s surprise jump in the unemployment rate.
Jobless claims last week dropped 17,000 to 233,00, marking the biggest fall in almost a year. The encouraging data comes after last week’s disappointing nonfarm payroll report for July led to a historic selloff and sparked concerns of a recession.
