US stocks recover from three-day streak | Financial market news

0
62


The top three U.S. stock indexes rose solidly, with the Nasdaq, weighed down by Tesla Inc., regaining the rear.

Wall Street ended strongly at the close of a broad rally on Thursday, which recovered from three consecutive days of selling optimistic labor market data.

The top three U.S. stock indexes rose solidly, with the Nasdaq, weighed down by Tesla Inc., regaining the rear. Meanwhile, cyclical stocks have had 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 percent, 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 sparked fears of inflation, as shortages of materials and labor threaten to raise prices in the face of a demand boom.

“If it’s a walking race, supply chains are still tying their shoes,” said David Carter, investment director at Lenox Wealth Advisors in New York City. “But they will catch up with demand pretty quickly.”

But on Thursday, investors seemed to be focusing on the middle side of the demand / supply equation.

This was demonstrated with the overcoming of small caps, chips, and transportation, economically sensitive stocks that will earn as the U.S. emerges from the coronavirus pandemic recession.

“The sectors and stocks that were most affected by yesterday’s sell-off rebounded sharply as economic growth is expected to continue strong year-round and inflation is likely to be temporary,” Carter added. .

New unemployment insurance claims continue to fall, according to U.S. Department of Labor (DOL) unemployment claims data, which reached 14-month lows.

DOL data also showed that producer prices rose last month, based on the narrative of Wednesday’s consumer price inflation report.

“The inflation drive is back on track,” Carter said. “And it will continue to scare the markets for months to come.”

But price hikes have been widely expected, and the U.S. Federal Reserve has repeatedly given assurances that it does not expect those hikes to turn into sustained long-term inflation.

Energy stocks lost ground, weighed down by falling crude oil prices.

The owner of the dating app, Bumble Inc., fell below the starting price of the public offering, as investors were cautious about how quickly users will return to face-to-face meetings.

Shares of Walt Disney Co. fluctuated throughout the session ahead of the company’s quarterly results, expected after the close.

Boeing Co. advanced after getting approval from U.S. regulators to fix a grounding problem.

Tesla continued its slide after chief Elon Musk doubled his sudden rejection of the Bitcoin cryptocurrency.





Source link