S&P 500 rises to a file after better-than-expected jobless claims, Dow climbs 150 factors
The S&P 500 climbed to an all-time high on Thursday after weekly jobless claims came in slightly better than expected.
The broad equity benchmark added 0.4% to hit an all-time high on pace for its 54th record closing high of 2021. The Dow Jones Industrial Average rose 150 points, lifted by Apple and Chevron. The tech-heavy Nasdaq Composite advanced 0.4%, also hitting a record.
First-time claims for unemployment insurance totaled 340,000 for the week ended Aug. 28, versus a Dow Jones expectation of 345,000. The number is also the lowest since March 2020 at the beginning of the Covid crisis.
The data came in a day before the key August jobs report, which investors are watching closely to decipher how fast the Federal Reserve will remove easy monetary policy. Economists predict 720,000 jobs were added in the month, down from 943,000 jobs added in July.
“With jobless claims hitting a pandemic low, there’s definitely some optimism as we look ahead to the full jobs picture tomorrow,” said Mike Loewengart, managing director of investment strategy at E-Trade. “We could experience a bit of a tug and a pull — on one hand a solid jobs report is a positive indication of economic recovery, and on the other it backs up the Fed’s case to begin tapering.”
Fed Chairman Jerome Powell has emphasized the need for more strong jobs data before the central bank would start to unwind its massive bond-buying program, putting heightened focus on Friday’s employment report.
On Thursday, Chewy and Five Below were among the notable movers with shares tumbling 9% and 8%, respectively, after reporting quarterly results. Shares of ChargePoint, the maker of charge systems for electric vehicles, jumped 12% after reporting stellar quarterly earnings.
Wall Street started out September trading with muted action on Wednesday with the S&P 500 closing near the flat line. The Nasdaq Composite advanced 0.3% to eke out a record.
While September has been among the seasonally weakest months of the year, many hold a constructive view on the market as the technical backdrop remains solid and the economic reopening from the pandemic continues.
“The relentless march higher on low volatility in U.S. equities continues and with breadth, volume positioning and sentiment measures all positive in our view we look for the rally to extend further into new highs yet,” Credit Suisse said in a note Wednesday.
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