4:15pm: Stocks stage comeback
The three major US stock indexes booked gains at the closing bell as new jobs data eased investor concerns about the state of the labor market.
Boosted by a surge in chip stocks, the Nasdaq added 2.9% at 16,660 points.
The S&P 500 was up 2.3% at 5,319 points, marking the index’s biggest single-day gain since November 2022, and the Dow Jones gained 1.8% at 39,446 points.
3:07pm: Gold approaching new record?
Gold moved higher as stocks bounced back on Thursday, trading in the mid $2,400s.
City Index market analyst Fawad Razaqzada attributed gold’s slight weakness in recent days to the sharp sell-off in stocks but noted that the downside is limited for the yellow metal.
“The fundamental gold outlook remains positive, and new all-time highs are still within reach,” Razaqzada believes.
“Gold is still riding a bullish wave as it has been all year. As long as we keep seeing higher highs and higher lows, the trend remains firmly in favour of the bulls, so we're sticking with our optimistic gold outlook and reckon a new all-time high could be seen soon.”
12:05 pm: Stocks in positive territory
Upbeat jobs data that eased recession concerns saw stocks rally on Thursday afternoon.
The Nasdaq led the advance, up 2.4% at 16,577 points, while the S&P 500 was up 1.9% at 5,297 points and the Dow Jones added 1.4% at 39,302 points.
IG chief market analyst Chris Beauchamp said buyers have taken control of the session thanks to the fall in weekly jobless claims.
“Weekly jobless claims data might well become the datapoint to watch until the next Fed meeting, as investors search anxiously for signs that that the US is headed towards a recession, or that it will swerve this dire outcome,” Beauchamp said.
“This week’s data was better than expected, helping the cause of those that will argue last week’s payrolls were more a one-off than the beginning of a sustained trend.”
He added that stocks continue to endure high volatility.
“Investors are rapidly relearning the lesson that spikes in volatility do not immediately subside after the initial move,” Beauchamp commented.
“Both buyers and sellers this week have had to endure wide swings in price action, which will no doubt come as a surprise after months of quieter trading. Stocks seem to have found a low for now, though it is still early days.”
9:33am: Wall Street opens higher
Wall Street has kicked higher at the open today, helped as unemployment figures helped ease concerns about a weakening US economy, in turn increasing the likelihood of an intrest rate cut at the Federal Reserve's next meeting.
The Nasdaq lifted close to 1.5% to 16,411, while the S&P 500 was 1% higher at 5,254. Meanwhile, the Dow Jones was unchanged at 38,763.
Speaking on the improved conditions after jobless benefit claims showed the sharpest slowdown in nearly a year last month was Michael Brown at Pepperstone, the Australian broker.
He said: "It’s only one datapoint, though this afternoon’s US jobless claims figures appear to have steadied some market nerves.
"Stocks have popped in reaction, as dip buyers emerge for a third straight day, though the rapid nature by which gains fizzled out yesterday may be some cause for concern."
"Over the medium-term, the path of least resistance should still lead to the upside for stocks, with earnings and economic growth both resilient and with the Fed set to begin policy normalisation from September onwards, albeit likely not to the extent of the 100bp of cuts markets price by year-end."
8:51am: Markets helped by slowing unemployment
Investors in the States have been handed a slight boost before the markets open after those on unemployment benefits were fewer than expected.
Initial jobless claims in the week to August 3 rose by 233,000, lower than expectations for a 247,000 rise.
Continuing claims from the week prior increased by 1.86 million, lowered by 1.87 million a week earlier.
Investors and US consumers will be hoping this report can help show signs of an improving jobs market, offering a justification to hike interest rates in September.
US markets have taken to the news positively, with all three indexes now up in premarket trading.
The Nasdaq, which was forecast to open flat before the report, is now on track to kick 154 points higher when trading commences.
8:30am: Wall Street to open flat
US markets are set to open flat today, with stocks struggling to stabilise as recession fears were renewed and carry trades continued to unwind.
The Dow Jones is shifting slightly lower in premarket futures, predicted to open 46 points lower at 38,864.
Both the Nasdaq and S&P 500 are flat.
“I think investors are still very much trying to figure out the state of the U.S. economy, the financial conditions of companies," said Joseph Ferrara at Gateway Investment Advisers.
Pharma giant Eli Lilly is expected to open more than 12.5% higher after it reported better-than-expected quarterlies, lifting its full-year outlook as its diabetes and obestity drugs recieve strong demand.