US stocks rose in another back-and-forth session on Thursday after concerns about the economy and a weak outlook for Microsoft ( MSFT ) weighed on sentiment in morning trading.
The S&P 500 rose 1.8%, rising sharply from a lower open, while the Dow Jones Industrial Average added 435 points, or 1.3%. The Nasdaq rose 2.7% on a rally in tech stocks. All three indexes rallied after two straight days of losses in a lackluster start to the holiday-shortened week.
Thursday’s moves come after stocks closed lower through early June, extending a streak of volatile trading into the ninth month as investors remain focused on inflation and the economic outlook.
“We’re anything but pessimistic about the market; in fact, we think there will be a substantial opportunity in stocks on the other side of this volatility and probably through the second half of the year,” the strategist said on Thursday financial technical market of LPL Scott Brown in a note. “However, outside of this recent rally, very little in this market has changed from a technical standpoint and that makes us wary of saying it’s in the clear.”
Investors weighed a slew of employment data. The Labor Department’s latest weekly jobless claims report showed unemployment insurance claims unexpectedly fell by 200,000 in a sign that labor market conditions remain a bright spot in the economy amid of growing concerns of a slowdown. Meanwhile, US private sector job creation fell sharply last month to the slowest pace of growth in the COVID-era recovery, according to ADP’s private payrolls report. The most important employment report for May will be released on Friday.
Oil prices retreated from a rally earlier this week after reports that Saudi Arabia and other OPEC members may increase crude output to offset a sharp drop in Russian output under new European Union sanctions. West Texas Intermediate (WTI) and Brent crude oil futures each fell more than 3% on Thursday morning.
The story continues
Microsoft shares pared losses to close plans after falling as much as 3% early on the day the tech giant cut its profit and revenue outlook, citing headwinds from currency movements, uniting -se to other companies that have recently reported struggling with a macroeconomic challenge. conditions
Elsewhere in the markets, Wall Street weighed in on other quarterly reports. Pet retailer Chewy ( CHWY ) saw shares jump 24% at the open after the company reported a surprise profit after the closing bell on Wednesday. Hewlett-Packard Enterprise (HPE) has joined a growing list of business names cutting forecasts on macroeconomic headwinds from supply chain disruptions, unfavorable currency movements and its exit from Russia. Shares closed up 5%.
There are more gains for traders from companies like Lululemon ( LULU ), RH ( RH ), and Okta ( OKTA ). With earnings season winding down, investors will follow economic data, with the labor market in focus.
On Wednesday, the April job postings report, also known as JOLTS, reflected a decline in the number of vacancies, a figure that the Federal Reserve will likely view positively as it works to cool the labor market. Institute for Supply Management manufacturing data released Wednesday also pointed to the economy’s resilience and suggested recession fears may be overblown.
The data echoed comments on the market from JPMorgan ( JPM ) CEO Jamie Dimon that indicated a gloomier outlook for the U.S. economic picture. In a conference call on Wednesday, the head of the largest US bank said the economy is facing a “hurricane” as the Federal Reserve moves forward with its monetary tightening plans.
“Are we going to slow down from a growth perspective? Yes, absolutely,” Cornerstone Wealth Group chief investment officer Cliff Hodge told Yahoo Finance Live on Wednesday, commenting on Dimon’s remarks. “Will we fall into a recession? In the end, but I think it will take longer to play out.”
In the last session, the Federal Reserve indicated in its “Beige Book” periodical that economic activity in the United States may have cooled in some parts of the country, weighed down by inflation, supply chain problems and the labor shortage.
“Worker shortages continue to keep labor markets tight and companies understaffed,” LPL Financial chief economist Jeffrey Roach said in a note. “In some districts, businesses are freezing hiring, which is consistent with the decline in April job openings reported by the Bureau of Labor Statistics.”
4:00 PM ET: Stocks rally after morning losses as volatility spills into June
Here’s how Wall Street wrapped up Thursday’s trading session:
S&P 500 (^GSPC): +75.66 (+1.84%) to 4,176.89
Dow (^DJI): +434.79 (+1.33%) to 33,248.02
Nasdaq (^IXIC): +322.44 (+2.69%) to 12,316.90
Crude (CL=F): +$2.00 (+1.74%) to $117.26 a barrel
Gold (GC=F): +$24.60 (+1.33%) to $1,873.30 per ounce
10-year treasury (^TNX): -1.8 bp to yield 2.9130%
12:38 pm ET: S&P, Dow and Nasdaq turn positive after erasing earlier losses
Here were the top market moves as of 12:38pm ET:
S&P 500 (^GSPC): +45.31 (+1.10%) to 4,146.54
Dow (^DJI): +167.25 (+0.51%) up to 32,980.48
Nasdaq (^IXIC): +238.57 (+1.99%) to 12,233.03
Crude (CL=F): +$1.81 (+1.57%) to $117.07 a barrel
Gold (GC=F): +$24.00 (+1.30%) to $1,872.70 per ounce
10-year treasury (^TNX): -0.9bp for a return of 2.9220%
9:30am ET: Stocks extend losses as Microsoft’s weak guidance weighs on tech
Here’s where the major indexes opened at the start of Thursday’s session:
S&P 500 (^GSPC): -9.61 (-0.23%) to 4,091.62
Dow (^DJI): +7.78 (+0.02%) to 32,821.01
Nasdaq (^IXIC): -65.67 (-0.55%) to 11,928.79
Crude (CL=F): -$1.33 (-1.15%) to $113.93 a barrel
Gold (GC=F): Settlement date S$ to $N/A per ounce
10-year treasury (^TNX): -2.3 bp for a return of 2.9080%
9:18 am ET: 200,000 more Americans filed new claims last week
Claims for unemployment insurance fell unexpectedly in the latest weekly data suggesting labor market conditions remain a bright spot in the economy amid growing concerns of a slowdown.
The Department of Labor latest weekly unemployment claims report showed 200,000 claims were filed in the week ending May 28, below the 210,000 economists polled by Bloomberg expected.
Last week, weekly data from the Labor Department raised concerns among investors that the job market may be cooling as the Federal Reserve tightens financial conditions.
“Jobless claims were higher a couple of weeks ago, prompting some fears that the economy had suddenly hit a soft patch, but today’s data indicates that a storm is not brewing in labor markets.” FWDBONDS Chief Economist Christopher Rupkey said in a note. “Quite the opposite, with the drop in the total number of people receiving unemployment benefits indicating that the jobless rate could fall in tomorrow’s monthly report to a new record low.
9:06 am ET: US private payroll growth is worst month since April 2020
U.S. private-sector job creation fell sharply last month to the slowest pace of growth in the COVID-19 era recovery, pointing to a cooling demand for labor it works in a context of rising interest rates and tighter financial conditions.
Private sector payrolls grew by 128,000 in May, ADP said in its the closely watched monthly report on Thursday. That followed a rise of 202,000 jobs added in April, revised down from the 247,000 reported in the initial reading. Consensus economists were looking for private payrolls to rise by 300,000, according to Bloomberg data.
ADP’s monthly private jobs report comes ahead of the Labor Department’s official employment report released on Friday. While the ADP report typically does not serve as a perfect indicator of what to expect from government-issued data due to differences in survey methodology, the print has often served as an indicator of growth in the ‘occupation that took place during a certain period.
“Against the backdrop of a tight labor market and high inflation, monthly labor gains are moving closer to pre-pandemic levels,” said ADP Chief Economist Nela Richardson. “The rate of hiring job growth has moderated across all industries, while small businesses remain a source of concern as they struggle to keep up with larger companies that have been booming of late “.
7:12 am ET: Stock futures jump, oil slips ahead of market open
Here’s where the major indexes were in premarket trading Thursday:
S&P 500 futures (IS=F): +24.00 (+0.59%) to 4,123.00
Dow futures (YM=F): +154.00 (+0.47%) to 32,952.00
Nasdaq futures (NQ=F): +95.00 (+0.76%) up to 12,646.00
Crude (CL=F): -3.23 (-2.80%) to $112.03
Gold (GC=F): +$9.90 (+0.54%) to $1,858.60 per ounce
10-year treasury (^TNX): +8.00 bps to gain 2.931%
A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., May 20, 2022. REUTERS/Andrew Kelly
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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