On Thursday, a slew of US stock indices but tech-heavy Nasdaq, had closed out the session with modest gains on prospects of a solid economic recovery, as economic data released earlier on the day had revealed an improved landscape for US labour market with weekly initial jobless claims hitting a fresh 14-month low.
Aside from that, a New York Times report saying that the US President Joe Biden had prepared a giganotosaurus $6 trillion budget for fiscal 2022, which he would more likely to unveil on Friday, charged up investors’ morale further.
On top of that, in the day’s decent gains in the Wall Street were also catalysed by a latest cohort of shifting towards defensives and cyclicals stocks, which would likely to be benefitted by the most of a rapid rebound from last year’s pandemic associated fiscal slump.
Besides, US Labour Department said earlier in the day that the number of Americans filing for state unemployment benefits for the first time on their lives, dipped to a seasonally adjusted 406,000, the lowest level since mid-March 2020, as pandemic containment measures were being lifted in most US states, prompting Americans to swamp in-house restaurants and stores following more than a year of stiffer restrictions.
In tandem, a Government report reaffirming that the US economy had grown by 6.4 per cent over the first quarter of 2021, well above a prior estimate of 4.3 per cent, promulgates a bullish bias across US money markets.
ekes out decent gains on solid recovery hope
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.41 per cent to 34,464.64 and benchmark S&P 500 added 0.12 per cent to 4,200.88, while Nasdaq edged 0.01 per cent lower to 13,736.28.
Meanwhile, referring to an upbeat initial jobless claims data for the week that ended on May 22, a chief investment officer for Commonwealth Financial Network in Waltham, Mass, Brad McMillan said, “When you look at the jobless claims that actually shows we’re continuing to make progress, if we get a strong jobs report in the next release that’s going to provide some support, until then there’s uncertainty so I don’t think there’s a lot of momentum either way”.