US: Healthy employment numbers make Wall Street happy
[WASHINGTON] US stocks finished higher on Thursday, after the Labor Department reported fewer new claims for unemployment benefits last week as the economy bounces back from the Covid-19 pandemic.
The data was the latest sign the world's largest economy is roaring back as businesses reopen and authorities ease restrictions imposed last year to fight the virus.
The data eclipsed fears of an uptick in inflation that could cause the Federal Reserve to raise rates and increase borrowing costs sooner than expected, which has hit indices in recent weeks, particularly tech.
Investors are looking for more good news when the government releases the all-important employment report on Friday that is expected to show more strong hiring in April.
The Dow Jones Industrial Average pushed to a new high of 34,548.53 by the close, a gain of 0.9 per cent.
The broad-based S&P 500 rose 0.8 per cent to end the day at 4,201.62, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 13,632.84.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Stocks of Covid-19 vaccine makers continued to suffer after Washington on Wednesday said it would support a global waiver on patent protections for the shots, though the sell-off was less severe than the day before.
Gregori Volokhine of Meeschaert Financial Services credited that to traders realizing the complexity of reaching an agreement in the World Trade Organization to allow widespread manufacturing of the vaccines, which Germany is against.
"This has removed a fear," he said.
Nonetheless, Pfizer ended one per cent lower and Moderna lost 1.4 per cent, but Johnson & Johnson gained 0.4 per cent.
AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Europe: Stoxx 600 falls on banks drag; tech contains losses on ASMI boost
US: Stocks end flat ahead of key inflation data
Hong Kong spot crypto ETFs to start trading next week
Greenback recovers from PMI slump, yen closes in on 155 per dollar
Hong Kong Stock Exchange bids farewell to first woman chair
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%