Tech stocks saved the day for Wall Street, helping the market rebound after a three-day slide. Gains in the technology sector and positive jobs report helped improve the market’s mood yesterday.
Major Indexes Gain
During yesterday’s session, technology and communication services gained the most among the 11 major sectors. In contrast, Energy is the only sector that ended up in the red. The gainers helped lift the stock market into positive territory. As of Thursday’s close, the S&P 500 rose 1.1% to end at 4,159.13 points. Meanwhile, the Dow Jones Industrial Average gained 188 points or 0.6% to close at 34,084.15. Finally, the Nasdaq Composite closed 1.8% higher and posted 13,535.74 points.
In addition, advancing issues outnumbered declining ones on the NYSE by a 1.69-to-1 ratio. Similarly, Nasdaq posted a 1.74-to-1 ratio favoring advancers. Also Thursday, the S&P 500 posted 13 new 52-week highs and no new lows. Then, the Nasdaq Composite recorded 50 new highs and 22 new lows.
Tech Stocks Lead the Way
Growth sectors, which mostly lagged the last couple of trading sessions, rebounded yesterday. Among the gainers are Netflix, Nvidia, and Adobe. They helped propel the Nasdaq Composite 1.8% higher to 13,535.74. The jobs report showing lower unemployment claims helped boost the market overall, with tech stocks leading the way.
Meanwhile, the Nasdaq 100 Index enjoyed a two-week high, fueled by gains in mega-caps including Apple Inc., Microsoft Corp., and Tesla Inc. powering the advance. AMonthe sectors, tech stocks rose the most in the S&P 500. In particular, Ford Motor Co. rose for the first time in three sessions. The launch of its Electric F-150 Lightning helped the company gain some momentum.
Crypto Regains Lost Ground
Bitcoin managed to gain back some of its earlier losses. During the last few days, Bitcoin sank to below $40,000. A brutal selloff followed a series of blows for the cryptocurrency, including fears that Tesla dumped their bitcoin holdings. Despite the drop, crypto-exchange operator Coinbase Global stocks rose 3.7% after a substantial infusion from Cathy Wood’s ARK Capital.
Jay Hatfield, founder, and chief executive of Infrastructure Capital Management, says there’s a big regulatory risk to cryptocurrency. “The central banks have a monopoly on currency. And so we just think that it’s a little bit surprised they haven’t enforced that monopoly,” he noted.
Unemployment Claims Fall to New Low
Meanwhile, the markets also celebrated the good news that new claims for unemployment benefits fell to record lows. For the third straight week, the unemployment claim rate dropped. For the week ending May 15, the number fell to 444,000, its lowest since the pandemic. This suggests that growth is picking up yet again, and jobs are plentiful for those looking for one.
Reports indicate that 22 states, including Texas, Georgia, Ohio, and Iowa will start withholding the additional $300-a-week federal unemployment benefits beginning this June. With many jobs open, some officials see the extra benefits as a disincentive for workers to get jobs.
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