U.S. stocks closed higher Thursday after fresh data showed the number of people seeking unemployment benefits declined from the previous week but remained elevated.
The S&P 500 ticked up 1.1%, extending its winning streak to four sessions. The Dow Jones Industrial Average also rose 1.1%, or 332 points, to 31056. The Nasdaq Composite climbed 1.2%, driven by a rise in technology stocks.
Investors are watching for signs that the economic recovery remains under way despite a high number of Covid-19 cases and new variants that existing inoculations may be less effective against. A handful of stocks that grew popular on online forums and posted big swings in recent days have also calmed. Meanwhile, vaccine rollouts are ramping up in the U.S., offering hope that there may be a sharp rebound later in the year.
“The move now is for cautious optimism: the market is turning back to fundamentals,” said Grace Peters, an investment strategist at J.P. Morgan Private Bank. “Volatility is here to stay, but markets will ultimately grind higher.”
The latest data on jobless claims showed that 779,000 people applied for initial benefits last week, a decline from the previous week, but still at a historically high level. Cold weather, a surge in Covid-19 case numbers and the threat of a new, highly contagious variant of the virus have contributed to a broader winter slowdown that has hindered the labor market’s recovery, economists say.
Investors are awaiting next steps on a new fiscal stimulus package in the U.S. In a Wednesday evening call with House Democrats, President Biden said he’s willing to send the next round of checks to a smaller, more targeted group of people.
“I think that flexibility is a good thing,” said Mrs. Peters, since it could improve the chances of passing the next stimulus bill in a timely manner.
“The market is expecting around $1 trillion, anything more than that could be positive for equities,” she added. “This is one of the tailwinds we’re looking for to support growth through the second quarter and beyond.”
In corporate news, e-commerce giant
jumped 5.3% after the company’s profit climbed, beating analysts’ projections.
rose 7.4% after reporting its earnings tripled from a year earlier. Chip…
Read More: Stocks Rise as Jobless Claims Fall