All three major indices are up for the week
“Right now, there is a lot of fear. “It just takes some positive development and all of a sudden that picture changes,” said Lewis Grant, an equity portfolio manager at Federated Hermes.
The latest data showed 326,000 Americans applied for unemployment benefits for the first time in the week ending October 2, down from 364,000 a week earlier, further boosting investor sentiment.
The Dow Jones Industrial Average rose 337.95 points, or 1%, to 34754.94. S&P 500 Added 36.21 points, or 0.8%, at 4399.76. The Nasdaq Composite rose even higher as technology stocks offset recent losses, pushing the benchmark up 152.10 points, or 1%, to 14654.02.
Thursday’s gains put stocks on a firm footing for the week. All three major benchmarks are up at least 0.6% in the last four trading days. It marks a full recovery from Monday’s losses, when sell-offs in Facebook stock and other large technology companies rocked the market.
“A tentative deal over the next few weeks should help reduce debt-limit-related market volatility,” Mark Heifel, chief investment officer at UBS Global Wealth Management, said in a note to clients.
Technology and other growth stocks edged higher on Thursday. Apple shares rose $1.29, or 0.9%, to $143.29, while Google parent Alphabet rose $33.20, or 1.2%, to $2,784.50. Twitter rose even higher at $63.97, adding $2.68, or 4.4%. The company said on Wednesday it would sell mobile advertising firm MoPub to Applovin for $1.05 billion.
Cyclical stocks also moved higher, showing investors’ willingness to snap up stocks in a big way. General Motors rose $2.51, or 4.7%, to $56.44, while Ford Motor gained 77 cents, or about 5.4%, to $14.89.
Energy stocks also posted decent gains, with a brief decline in commodity prices. US reserves rose more than expected and Russian President Vladimir Putin said on Wednesday that Moscow was ready to work to stabilize the global energy market. Schlumberger rose $1.08, or 3.6%, to $31.02, while Marathon Oil gained 27 cents, or 1.8%, to $15.36.
Financial stocks rose 0.6%, and bond yields continued to rise. The yield on the benchmark 10-year Treasury note rose to 1.570% on Thursday, up from 1.524% a day earlier. Yields and prices move inversely.
In Europe, the pan-continental Stokes Europe 600 index jumped 1.6%, with gains led by the basic resources and auto sectors.
Indices in Asia also closed with gains. Hong Kong’s Hang Seng rose 3.1% on gains in technology companies. Shares in Chinese Estates (Holdings) rose 32% in Hong Kong on Thursday after its majority shareholders offered to take the company private. The group is a major shareholder of the troubled asset giant China Evergrande Group..
South Korea’s Kospi rose 1.8%. The Nikkei 225 gained 0.5%.