The Dow Jones Industrial Average rose 345.09 points, or 1.05%, to 33,220.80, the S&P 500 gained 1.75% to close at 3,849.28, and the Nasdaq Composite climbed 2.59% to 10,478.09
Stocks jumped on Thursday as investors headed into the final trading days of 2022.
The Dow Jones Industrial Average rose 345.09 points, or 1.05%, to 33,220.80, recovering nearly all of its losses from the previous session. The S&P 500 gained 1.75% to close at 3,849.28, and the Nasdaq Composite climbed 2.59% to 10,478.09.
The Dow and S&P are slightly higher for the week, by 0.05% and 0.12%, respectively. The Nasdaq is on track for a 0.19% loss.
Louis Navellier, founder and chief investment officer of growth investing firm Navellier & Associates, called Thursday’s moves an ‘abbreviated one-day version of a Santa Rally.’
We were overdue for a rebound, and a lot of the recent weakness may be explained by further tax-loss selling once the Santa Rally didn’t materialize, he said. We’ll have further volatility into the new year with plenty of uncertainty about whether a soft landing is possible and if not how much resolve the Fed will have to not pivot if we tip into a serious recession.
Apple shares rebounded after four consecutive days of losses, rising 2.83%.
The market pushed higher early Thursday after the Labor Department reported an increase in jobless claims from last week, amid Federal Reserve efforts to cool the economy and in particular the labour market.
First-time filings for unemployment benefits totalled 225,000 for the week ended Dec. 24, according to the report. That was an increase of 9,000 from the previous week and slightly above the 223,000 estimate from Dow Jones.
The market seemed to appreciate that the jobs report showed a modest increase in continuing unemployment claims, in line with expectations and providing a nugget of evidence that a soft landing is possible, said Jason Blackwell, chief investment strategist at The Colony Group.
The market action follows a broad selloff during the regular session Wednesday as recession fears weighed on investor sentiment in a losing month and year. The Dow lost 365.85 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq Composite dropped 1.35%.