Wall Street climbs on boost from tech stocks after lower jobless claims

Wall Street climbs on boost from tech stocks after lower jobless claims

Technology stocks drive Wall Street rally on Thursday after three sessions of declines, as US jobless claims fall to pandemic low. 

The Labor Department’s data showed the number of Americans filing new claims for unemployment benefits dropped to a 14-month low last week as companies held onto their workers amid a growing labor shortage that helped to curb employment growth in April.

The data comes on the heels of stronger-than-expected consumer prices data, a surge in commodity prices and signs of a labor shortage this week, stoking inflation concerns that could force the US Federal Reserve to raise interest rates sooner than expected.

Losses in the past three days had pulled the S&P 500 4% off its record closing high on Friday, while the tech-heavy Nasdaq was about 8% below its April 29 all-time high.

The technology index, among the most battered S&P sectors this week, jumped 1.5% on Thursday.

The CBOE volatility index eases from 2-month high to 24.11 points.

The inflation talk has increased focus on economic data, with attention turning to retail sales and industrial production reports on Friday.

Dating app owner Bumble Inc shed another 10%, falling below its initial public offering price for the first time, despite forecasting current-quarter revenue above estimates. 

Walt Disney’s shares gained 0.8% ahead of its second-quarter results due after the closing bell.

Boeing Co edged 1.4% after the U.S. planemaker won approval from U.S. regulators for a fix of an electrical grounding issue that had affected about 100 737 MAX airplanes.

The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 90 new lows.

Damon Harrison
Market Analyst, IPG Group