4:05pm: US equities close higher as jobless claims drop
US stocks closed higher as falling jobless claims added to confidence in the US economic recovery.
A drop in jobless claims to the lowest in decades gave some investors confidence the American economy could keep growing through headwinds such as the Russia-Ukraine war and higher interest rates.
Initial jobless claims last week totaled 187,000, the lowest level since 1969, the Labor Department reported Thursday.
On the day, the Dow jumped 349 points, or 1.01%, to 34,707 and the S&P 500 rose 1.44% to 4,520. The tech-heavy Nasdaq increased 1.93% to 14,191.
12.55pm: US stocks climb
US stocks were up in afternoon trading, putting Wall Street indexes on course to recoup some of Wednesday’s losses, while oil prices slipped from recent highs.
The S&P 500 rose 0.7% to 4,490.45, a day after slumping 1.2%.
Meanwhile, the tech-focused Nasdaq Composite Index rose 0.9%, and the Dow Jones Industrial Average gained 0.5%, or about 175.86 points.
Stocks have struggled this year amid rising inflation, mixed economic signals, the war in Ukraine and the continuing disruptions from the pandemic.
The S&P 500 was down about 6% year-to-date entering Thursday’s session, while the Nasdaq, down about 11%, is in its longest bear market since 2008.
“While markets are broadly positive, a slowdown in US durable goods orders suggests signs of economic weakness are spreading,” said Chris Beauchamp, chief market analyst at online trading platform IG.
“Despite weakness in durable goods orders, markets have continued to make headway, with the US out in front.”
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9.55am: US benchmarks start on front foot
US shares started marginally on the front foot on Thursday as a NATO summit takes place in Brussels to discuss the Ukraine conflict and there are also meetings of EU leaders and the G-7.
The Dow Jones Industrial Average added around 40 points at 34,399. The broader-based S&P 500 added around 16 points to stand at 4,473.
On Wall Street, the tech-laden Nasdaq Composite Index advanced around 64 points at 13,986.
Investors have a host of issues to mull over with geopolitical tensions and inflationary worries perhaps at the top of the pile.
Craig Erlam, senior market analyst at Forex group Oanda, wrote: "It's been a relatively slow start to trading in equity markets as we approach the end of the week, with stocks losing the momentum that's driven the strong recovery in recent weeks."
He added: "The threat of very high inflation and rapid rate hikes isn't proving much of a deterrent either which is interesting after more than a decade of ultra-low rates in both cases.
"Again, this may change as we see more evidence of the economic consequences and as central banks both raise rates and reduce their balance sheets but for now, markets are holding up."
7.40am: US stocks set for higher open
US stocks look set to open higher on Thursday, rebounding from losses in recent days, though gains are likely to be capped amid ongoing worries over high oil and commodity prices and as investors look toward US weekly jobless figures and manufacturing data.
Futures for the Dow Jones Industrial Average were up 0.5% on Thursday, while those for the S&P 500 added 0.6% and contracts for the tech-heavy Nasdaq-100 rose 0.7%.
Among commodities, international benchmark Brent crude added 0.3% to $118.09 a barrel, while gold gained 0.4% to $1,945.30 a troy ounce.
US major averages took a breather on Wednesday as concerns over the war in Ukraine and its impact on oil prices, and economic uncertainty at home continue to undermine investor sentiment.
‘’There is little sign the pedal is coming off the accelerator for energy prices amid a fresh round of volatility that has hit markets after Russia moved to retaliate in the economic war being waged,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
In a tit-for-tat move, Moscow announced yesterday that it will only accept payment for its exports in roubles after its foreign currency reserves were frozen.
“This (Russia’s move) has sent European futures surging and the fear is that this move would deepen the energy crisis and clog agreements worth hundreds of millions of euros every day. In simple words, we are likely to see more higher energy prices which means more inflation and gold traders are watching that closely,” said Naeem Aslam, chief market analyst at AvaTrade.
Economic data due out later will keep investors sidelined, Aslam added, forecasting weekly jobless claims at around 210,000 and US durable goods order down by 0.5%.
“Investors are (also) keeping a close watch on the NATO's emergency meeting. President Joe Biden is traveling to Europe to increase pressure on Russia and provide support for a ceasefire,” he concluded.
Contact the author at jon.hopkins@proactiveinvestors.com