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US Equities Rise As Investors Rate Extended Tech Rally Against Weak Jobless Claims Data

NYSE traders
  • US stocks rose on Thursday as tech giants attempted to recover all-time highs.
  • The bounce in tech names pushed the indices higher on Wednesday. The sector has fueled outsized volatility in recent sessions as investors reconcile the high stock valuations and strong momentum.
  • Investors also mulled over weekly unemployment claims data which signaled lasting pain in the US job market. Requests totaled 884,000 for the week ending Saturday, missing the economist̵
    7;s estimate of 850,000.
  • Oil fell after the American Petroleum Institute reported that US inventories rose by nearly 3 million barrels. West Texas Intermediate crude fell as much as 2.3% to $ 37.17 a barrel.
  • Watch the live major indices update here.

US equities gained Thursday as tech stocks resumed their recovery rally and pushed major indices higher.

The popular sector was in the spotlight this week, following the slump before Labor Day weekend. Tech names pushed indices higher on Wednesday as investors rallied stocks to lower levels.

Mega-caps including Apple, Facebook, Microsoft and Amazon led the wave. Volatility remains high, and any mistake by a tech giant would likely weigh on the broader market.

Traders also digested worse-than-expected unemployment claims data. Claims for unemployment benefits in the week ending Saturday reached an unadjusted total of 884,000. Economists interviewed by Bloomberg had expected weekly credits to drop to 850,000. Thursday’s report signaled continued pains in the labor market even after the unemployment rate dropped in August.

Here’s where the US indices stood shortly after the 9:30 ET market opened on Thursday:

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Continuing compensation claims, which follow the number of Americans receiving unemployment benefits, have increased slightly to 13.4 million. Economists had expected continuing claims to drop below 13 million.

Market participants will be looking to Capitol Hill for updates on a stimulus vote. Senate Republicans will introduce a $ 500 billion bill to expand unemployment benefits by $ 300 a week. The Democrats, who have repeatedly called for a package with at least $ 2.2 billion in economic aid, will likely cancel the smaller proposal.

Tesla shares rallied, continuing their bullish trend after tank until the end of last week.

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AstraZeneca retraced some of Wednesday’s losses. The biotech company fell after it halted a trial of its coronavirus vaccine candidate because a participant had an adverse reaction. Chief Executive Pascal Soriot said Thursday that the company still aimed to know before the end of the year whether the vaccine protects people from the coronavirus.

Spot gold gained 0.9%, to $ 1,963.87 an ounce, at an intraday high; the precious metal remained in a tight trading range of $ 1,900 to $ 2,000. The US dollar weakened and Treasury yields increased.

Oil declined after the American Petroleum Institute reported US inventories rose by nearly 3 million barrels last week, Bloomberg reported. West Texas Intermediate crude fell as much as 2.3% to $ 37.17 a barrel. Brent crude, the international standard for crude oil, fell 1.8% to $ 40.07 a barrel, to its intraday lows.

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