US stock market rallies amid positive employment data
Key US indices rose on Thursday after a three-day fall. Optimistic economic data provided the background for the growth.
The number of applications filed for the first time by Americans in the week ending May 15 was 444,000, the lowest level since March 2020. Economists predicted a decline to 452 thousand. Last week there were 478 thousand applications.
The Dow Jones Industrial Average rose 0.55% to 34,084.15 points. The S&P 500 broad market index added 1.06% to 4,159.12 points. The technology and communications sectors led the S&P 500, with gains of more than 1.6%. Equities in these sectors are particularly susceptible to interest rate concerns. Of the 11 sectors of the S&P 500, only the energy sector ended the day in the red. The NASDAQ tech index rose 1.77% to 13,535.74 points.
Jonathan Korpina, the Senior Managing Partner at Meridian Equity Partners, said people are still worried about volatile market movements. “People are still worried about what the economy will look like in a month, in two months, in six months,” he said.
Principal Global Advisors chief strategist Sima Shah noted that markets are likely to be volatile until additional economic data provides a clearer picture. “I don’t think we can know anything about where inflation will go before September, but the market cannot wait that long,” he said.
The Stoxx Europe 600 Index rose 1.27%, while the London FTSE 100 Index added 1%.
The Hong Kong Hang Seng Index fell 0.09% fell. The Shanghai Composite lost 0.04%, while Japan’s Nikkei 225 rose 0.8%.
Earlier reported that the key US indices continued to decline on Wednesday after Monday and Tuesday. The Federal Reserve System has signaled its possible departure from its easy money policy.
