(Reuters) – Technology and growth stocks hit the wall on Thursday after fears about future Federal Reserve rate hikes eased and data showed a cooling labor market. Increased the city’s major indices.
Mega Cap Stock Apple Inc (AAPL.O)Alphabet Inc. (GOOGL.O)Microsoft (MSFT.O) and Amazon.com Inc. (AMZN.O) Rising between 1.5% and 3%, it also helped lower 10-year Treasury yields.
All major S&P 500 sector indices rose, consumer discretion (.SPLRCD) Information technology (.SPLRCT) They are up 1.8% and 1.9% respectively.
The number of first-time claims for unemployment benefits increased by 9,000 in the week ending December 24 to 225,000 on a seasonally adjusted basis, according to a US Labor Department report.
The report suggests some softening in an otherwise tight labor market, boosting hopes that the central bank will reduce its aggressive monetary policy stance.
“Signs are certainly clear that the job market is starting to weaken,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
“We are at the end of the year and, of course, the market is not doing well. Today we see bargain hunting going on.”
Traders continue betting that the Federal Reserve will raise rates by 25 basis points in February, and expect it to peak at 4.92% in June 2023.
Cboe Volatility Index (.VIX)Wall Street’s stock index, known as the Fear Index, has fallen, suggesting that investor fears have eased.
A strong labor market and a resilient U.S. economy have fueled concerns that interest rate hikes could be prolonged, even as inflation pressures eased and interest rate hikes continued to taper off. I’m here.
The Fed’s aggressive interest rate hikes have hit the S&P 500-benchmarked stock market this year. (.SPX) Down 19.6%, the tech stock Nasdaq is down nearly 33%.
Wall Street’s main index fell more than 1% on the Nasdaq on Wednesday. (.IXIC) 2022 closing lows hit a low as rising COVID cases and geopolitical tensions in China heightened fears of a possible recession in 2023.
However, investors prefer stocks with high dividend yields and stable earnings, which has helped to stem the sharp decline in the Dow Jones, which is dominated by industrial stocks. (.DJI)which is a meager 8.8% annual decline.
9:56 a.m. ET Dow Jones Industrial Average (.DJI) The S&P 500 was 33,137.97, up 262.26 points, or 0.80%. (.SPX) was up 46.52 points (1.23%) to 3,829.74, while the Nasdaq Composite (.IXIC) 10,390.18, up 176.89 points, or 1.73%.
tesla stock (TSLA.O) Stocks are down 66% this year, up 6.5% after CEO Elon Musk told staff that they shouldn’t be bothered by the madness of the stock market.
Stocks in US-listed Chinese online education companies such as Gaotu Techedu Inc (GOTU.N) and TAL Education Group (TAL.N) It fell between 5% and 11% after Bloomberg News reported that China’s education ministry had announced a series of new restrictions.
On the NYSE, gainers outnumber losers by 7.74 to 1. On the Nasdaq, gainers outnumber losers by a ratio of 4.29 to 1.
The S&P Index failed to hit 52-week highs and lows, while the Nasdaq posted 24 new highs and 81 new lows.
Reported by Ankika Biswas and Amruta Khandekar of Bangalore. Edited by Arun Koyyur
Our criteria: Thomson Reuters Trust Principles.