Stocks rebound from massive sell-off, S&P 500 closes more than 1% higher as tech gains
Stocks rose on Thursday, clawing back some of their losses from the previous session, as shares of major tech companies advanced ahead of their quarterly earnings reports. Sentiment also got a lift from better-than-expected economic data.
The S&P 500 climbed 1.2% to 3,310.11 and the Nasdaq Composite advanced 1.6% to 11,185.59. The Dow Jones Industrial Average closed 139.16 points higher, or 0.5%, at 26,659.11. Thursday marked the first daily gain for the Dow in five days. The S&P 500 snapped a three-day slide.
Earnings expectations for Big Tech companies were high given their lofty valuations relative to the broader market.
- Amazon reports sales growth of 37%, topping estimates
- Starbucks earnings top estimates as sales rebound quicker than expected in U.S., China
Better-than-expected GDP, jobless claims data
U.S. gross domestic product for the third quarter expanded at a 33.1% annualized pace, its fastest growth ever. The reading came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones.
“Overall, the initial recovery in GDP after the first wave of lockdowns were lifted was stronger than we originally anticipated,” said Paul Ashworth, chief U.S. economist at Capital Economics. “But, with coronavirus infections hitting a record high in recent days and any additional fiscal stimulus unlikely to arrive until, at the earliest, the start of next year, further progress will be much slower.”
Meanwhile, the number of first-time unemployment-benefits filers declined for a second straight week and hit its lowest level since March. Initial weekly U.S. jobless claims came in at 751,000 for the week ending Oct. 24, better than a Dow Jones estimate of 778,000.
Reference: CNBC
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