US stock indexes soared on Thursday as new jobless claims data raised investors‘ confidence. The Dow rallied 683 points, while the S&P 500 and Nasdaq rose 2.3% and 2.8%, respectively. The S&P 500 enjoyed its best day since November 2022, clawing back losses from Monday’s big sell-off.
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 233,000, 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.
The information technology sector led the S&P 500’s rise, up 3.5%, while communication services also notched strong gains. Pharmaceutical giant Eli Lilly soared 14% after reporting strong earnings in its most recent quarter, helped by big demand for its GLP-1 weight loss drugs. The company’s quarterly revenue of $11.30 billion beat analyst estimates of $9.98 billion, and the company raised its annual revenue outlook.
„We just see unbelievable demand, and we’re not even trying that hard to promote this drug. We’re not advertising, we told our sales reps to basically just service customers, don’t promote,“ CEO David Ricks said in an interview with CNBC on Thursday.
Next week, investors will be tuned into the latest inflation data, with July’s consumer price index scheduled to be released on August 14. The data will be the next big input for bets on Fed policy for the rest of the year.
In commodities, bonds, and crypto, West Texas Intermediate crude oil rose 1% to $76.04 a barrel. Brent crude, the international benchmark, ticked higher 0.9% to $79.02 a barrel. Gold traded higher at $2,463.30. The 10-year Treasury yield rose two basis points to 3.98%. Bitcoin rose 8% to $59,549.
Overall, Thursday’s rally in US stock indexes was driven by positive jobless claims data and strong performances in key sectors like information technology and pharmaceuticals. Investors will now be looking ahead to next week’s inflation data to gauge the future direction of Fed policy. The market remains volatile, but Thursday’s gains provided a much-needed boost after recent losses.