Stores It rose on Thursday as the S&P 500 rose Breaking its longest losing streak since October, Wall Street assessed the prospects of a future recession.
The S&P added 0.75%, ending at 3,963.51. The Dow Jones Industrial Average rose 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rose 1.13%, closing at 11,082.00.
Despite Thursday’s gains, stocks are still on pace for a losing week, with the Dow down 1.88%. The S&P and Nasdaq are set to end lower by 2.66% and 3.31%, respectively.
“We’ve seen a strong sell-off over the past few days, and it doesn’t take much for us to create supports for a modest rally,” said Quincy Crosby, chief global strategist at LPL Financial, referring to Thursday’s unemployment claims – specifically the continuing claims -. Potential catalyst for market action.
data showed a modest increase in claims. Continuing claims hit their highest level since February, a slight move in the right direction for the economy that could fuel the narrative that the labor market needs to collapse for the Fed to successfully bring down inflation.
“Once again, we’re going back to bad news as good news,” Crosby said.
Semiconductor and technology stocks that have suffered during this year’s sell-off were also higher during Thursday’s session, with Nvidia and Amazon adding 6.5% and 2.1%, respectively. Activision Blizzard It fell through after the Federal Trade Commission sued to block its acquisition by Microsoft. Jim Stop It rose 11% after the earnings were published late on Wednesday.
Investors’ attention remains focused on next week’s Fed policy meeting, where the central bank is widely expected to issue a 50 basis point rate hike. It’s a smaller increase than the previous four rate hikes, but it may do little to ease recession fears as the Fed tries to crush higher rates.
Next week’s November CPI should provide more clarity on the direction of inflation, along with the PPI scheduled for Friday.