U.S. stocks jumped on Thursday after weekly initial jobless claims fell more than expected, providing a reassuring update on the health of the U.S. labor market. The S&P 500 (^GSPC) rose 1.3%, while the tech-heavy Nasdaq (^IXIC) also gained 1.3%. The Dow Jones Industrial Average (^DJI) rose about 1.3%.
The normally routine unemployment update took center stage on Thursday as the labor market came under increasing scrutiny after last week’s sluggish nonfarm payrolls update served as one of the early catalysts for the recent declines.
Government data showed there were 233,000 initial jobless claims in the week ended August 3, down from 250,000 the previous week and less than economists had forecast.
The figure gave fresh impetus to trading on Thursday. Wall Street’s comeback attempt failed on Wednesday as stocks slid at the close, ending with significant losses. The moves – ranging from big gains to significant losses – continued a turbulent streak that has permeated markets for much of the past week.
In individual stocks, AI giant Nvidia (NVDA), a star of the Magnificent Seven, took center stage after another day of ups and downs sent the stock down another 5%. The stock rose slightly in early trading.
Eli Lilly (LLY) was the highlight of the results list, with shares of the pharmaceutical company rising over 10% after it raised its revenue and profit forecasts for the year on strong sales of weight-loss drugs.
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