The US stock market experienced a significant rally on Thursday, driven by a stronger-than-expected unemployment report that alleviated concerns about a slowing economy. Major tech stocks led the charge, with Nvidia, Apple, Tesla, Intel, and others contributing to a nearly 3% increase in the Nasdaq.
The Dow Jones Industrial Average soared by 683.04 points, or 1.76%, to 39,446.49. The S&P 500 rose by 119.81 points, or 2.30%, ending at 5,319.31, while the Nasdaq Composite gained 464.22 points, or 2.87%, to close at 16,660.02. The Nasdaq 100 saw an impressive surge of over 3%.
Nvidia’s stock price climbed 6.13%, Advanced Micro Devices surged nearly 5.95%, Intel jumped 7.9%, and Tesla rose 3.69%. Other tech giants saw gains as well, with Apple up 1.66%, Microsoft rising 1.07%, Amazon increasing by 1.86%, and Alphabet climbing 1.92%. Notable gainers in the Nasdaq 100 included Arista Networks, Marvell, ON Semiconductor, Microchip, Broadcom, and Qualcomm, which saw increases ranging from 6-10%.
Futures for US stock indices were higher on Friday, with Nasdaq 100 futures up 0.3% and Dow Jones futures relatively stable. The market’s rally follows a positive jobs report, with initial claims for state unemployment benefits dropping by 17,000 to 233,000 for the week ending August 3, the largest decline in nearly a year. This figure was better than the 240,000 claims forecasted by economists.
In addition, hopes for potential interest rate cuts by the Federal Reserve contributed to the market’s gains. Federal Reserve policymakers have expressed increased confidence that inflation is easing, which may lead to future rate cuts. Central bankers emphasized that decisions on rate cuts will be guided by economic data rather than stock market fluctuations.
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