U.S. stocks ended Thursday higher, led by technology stocks, as markets continued to recover from heavy losses earlier this week.
[Click here to read what’s moving markets heading into Friday, April 29]
The S&P 500 gained 2.5% and the Dow Jones Industrial Average rose more than 600 points, or 1.8%. The tech-heavy Nasdaq Composite climbed 3.1% to a trade high, marking its best rise since March after stronger-than-expected earnings from Facebook parent Meta (FB ) that sent shares up nearly 18%.
Investors looked at new data from Washington DC that showed U.S. economic activity unexpectedly contracted in early 2022 for the first time in nearly two years as lingering supply chain imbalances, pressures Inflationists and the war in Eastern Europe weighed on growth. First-quarter US gross domestic product (GDP) fell at an annualized rate of 1.4% after a 6.9% growth rate at the end of 2021.
“The latest economic data snapshots remind us of the volatile and complicated times we live in,” Bankrate senior economic analyst Mark Hamrick said in an emailed note.
With just three trading days in April, the typically bullish month is on pace for its worst performance since a 9.0% drop in 1970, according to data from LPL Financial Research.
“The usual suspects of a slowing economy, a hawkish Federal Reserve bank, supply chain concerns, war in Europe and now another Chinese shutdown have combined to make this one of the worst start to a year for both stocks and bonds.” Ryan Detrick, financial market strategist at LPL, said in a comment on Tuesday.
Investors are in for a lackluster earnings season, with 180 companies listed this week for quarterly reports. Traders are digesting mixed results from large-cap tech giants: Apple ( AAPL ) and Amazon ( AMZN ) will round out Big Tech gains after Thursday’s closing bell based on numbers from Microsoft ( MSFT ), Alphabet . (GOOGL) and Meta (FB) in recent days. Tech giants account for 22.2% of the S&P 500’s market cap.
The story continues
Shares of Meta Platforms rose about 17% in early trading Thursday after the company reported first-quarter daily active users that beat expectations after the market closed on Wednesday. Last quarter, Facebook lost $230 billion in market value, the worst single-day wipeout ever for any U.S. company, after the social media giant reported a profit decline attributed in part to a decline in US users on its flagship platform and competition. from TikTok.
“The bar was very low for Facebook, and this report is likely to clear that up,” analysts at Vital Knowledge said in a note after the earnings release.
Elsewhere in the markets, investors continue to struggle with headwinds from Russia’s invasion of Ukraine, the persistence of the supply chain mess and inflationary pressures and a further rise in interest rates as as soon as next week, when the Federal Reserve meets for its next policy setting on May 4. Adding to these headwinds are renewed concerns about an ongoing resurgence of COVID-19 in key regions of China that threaten to worsen the global economic outlook.
LPL Financial noted, however, that double-digit declines over a year are normal.
“After a 5% pullback all of last year, markets have provided a hostile reminder in 2022,” Detrick said in his Tuesday note, adding that since 1980, the average correction each year is 14.0%, which represents the correction of 13.0% this year. perspective
He also noted that of the 21 times since 1980 that the S&P 500 has experienced double-digit declines from its peak, the index managed to bounce back and finish the year positive 12 of those years.
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4:04 PM ET: Stocks jump as tech shares bounce back from recent losses
Here were the top market moves as of 4:04 PM ET:
S&P 500 (^GSPC): +103.56 (+2.48%) to 4,287.52
Dow (^DJI): +614.33 (+1.84%) to 33,916.26
Nasdaq (^IXIC): +382.59 (+3.06%) up to 12,871.53
Crude (CL=F): +$3.37 (+3.30%) to $105.39 a barrel
Gold (GC=F): +$7.60 (+0.40%) to $1,896.30 per ounce
10-year treasury (^TNX): +4.5 bp for a return of 2.8630%
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1:48 PM ET: S&P 500 up 2.4%, Dow gains 600 points, Nasdaq up 2.9%
Here were the top market moves as of 1:48 PM ET:
S&P 500 (^GSPC): +101.04 (+2.41%) to 4,285.00
Dow (^DJI): +604.51 (+1.82%) to 33,906.44
Nasdaq (^IXIC): +356.97 (+2.86%) up to 12,845.90
Crude (CL=F): +$2.62 (+2.57%) to $104.64 a barrel
Gold (GC=F): +$2.70 (+0.14%) to $1,891.40 per ounce
10-year treasury (^TNX): +4.5 bp for a return of 2.8630%
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12:10 pm ET: Stocks slip from session highs ahead of more tech gains
Here’s where the stock stood at midday Thursday:
S&P 500 (^GSPC): +32.90 (+0.79%) to 4,216.86
Dow (^DJI): +147.32 (+0.44%) up to 33,449.25
Nasdaq (^IXIC): +76.46 (+0.61%) to 12,565.40
Crude (CL=F): +$1.90 (+1.86%) to $103.92 a barrel
Gold (GC=F): -$2.00 (-0.11%) to $1,886.70 per ounce
10-year treasury (^TNX): +5.1 bp for a return of 2.8690%
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9:30am ET: Stocks jump as markets try to recover from the selloff
Here were the top market moves as of 9:30 a.m. ET:
S&P 500 (^GSPC): +54.92 (+1.31%) to 4,238.88
Dow (^DJI): +200.09 (+0.60%) to 33,502.02
Nasdaq (^IXIC): +227.07 (+1.82%) to 12,716.00
Crude (CL=F): -$0.15 (-0.15%) to $101.87 a barrel
Gold (GC=F): -$2.10 (-0.11%) to $1,886.60 per ounce
10-year treasury (^TNX): +5.9 bp for a return of 2.8770%
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9:02 am ET: 180,000 more Americans filed new jobless claims last week
Jobless claims fell again in the latest weekly data, hovering near their lowest levels since the 1960s, as a strong labor market and improving unemployment levels remain a bright spot of the US economy.
The Department of Labor latest weekly unemployment claims report showed 180,000 claims were filed in the week ending April 23, below the 184,000 economists polled by Bloomberg expected.
First-time claims for jobless benefits remained below 200,000 for a tenth straight week.
Given the rise and then decline in jobless claims, the Labor Department has also now reconfigured the way it adjusts weekly data to account for seasonal factors. Starting last week, the Labor Department returned to using “multiplicative” seasonal adjustment factors for the data. For much of the pandemic, the department had been using “additive” seasonal adjustments that help smooth out large swings in weekly numbers.
“As measured by a layoff indicator, the labor market appears to be holding up well,” Bankrate senior economic analyst Mark Hamrick said in an emailed note. “Seasonally adjusted new jobless claims fell from the previous week to 180,000. That’s slightly above the more than 50-year low of 166,000 last month.”
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8:55 am ET: US GDP unexpectedly contracted at an annualized rate of 1.4% in the first quarter
US economic activity unexpectedly slowed in the first three months of 2022 for the first time in nearly two years as lingering supply chain imbalances, inflationary pressures and war in Eastern Europe weighed on growth.
The Bureau of Economic Analysis (BEA) reported in a preliminary estimate that US gross domestic product (GDP) fell at an annualized rate of 1.4% after a growth rate of 6.9 % by the end of 2021. Economists polled by Bloomberg had expected a 1% increase.
The GDP report serves as an overview of economic activity, covering the period from January to March, but the metric is an important indicator of the state of the US economy earlier this year, especially as some strategists increasingly predict. the possibility of a recession in the short and medium term. A recession is usually measured by two consecutive quarters of negative GDP growth.
“In the first quarter, an increase in cases of COVID-19 related to the Omicron variant resulted in restrictions and continued interruptions in the operations of establishments in some parts of the country,” the BEA said in its report on Thursday in the morning “Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and welfare benefits to households declined as provisions in several federal programs expired or were reduced.”
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7:10am ET: Nasdaq futures up 2% on better-than-expected Meta earnings surge
Here were the top moves in futures trading ahead of Thursday’s opening bell:
S&P 500 futures (IS=F): +61.50 (+1.47%) to 4,241.75
Dow futures (YM=F): +277.00 (+0.83%) to 33,503.00
Nasdaq Futures (NQ=F): +268.50 (+2.06%) to 13,277.50
Crude (CL=F): -$0.48 (+0.47%) to $101.54
Gold (GC=F): +$0.20 (+0.01%) to $1,888.90 per ounce
110-year treasury (^TNX): 0.00 bp for a return of 2.8180%
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6:14 PM ET Wednesday: Stock futures jump as markets try to recover from selloff
Here’s where stock futures were in after-market trading Wednesday evening:
S&P 500 futures (IS=F): +34.50 (+0.83%) to 4,214.75
Dow futures (YM=F): +96.00 (+0.29%) to 33,322.00
Nasdaq Futures (NQ=F): +179.25 (-1.38%) to 13,188.25
Crude (CL=F): +$0.01 (+0.01%) to $102.03
Gold (GC=F): -$2.70 (-0.14%) to $1,886.00 per ounce
110-year treasury (^TNX): +4.6 bp for a return of 2.8180%
NEW YORK, NEW YORK – APRIL 25: People walk by the New York Stock Exchange (NYSE) on April 25, 2022 in New York City. Stocks fell on Monday morning as investors continued to worry about inflation and global uncertainty over Russia’s invasion of Ukraine. (Photo by Spencer Platt/Getty Images)
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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