The US benchmark equity indexes experienced a notable increase on Thursday, driven by positive developments in weekly jobless claims data that helped alleviate some economic concerns. The Nasdaq Composite surged by an impressive 2.9%, closing at 16,660. Similarly, the S&P 500 followed suit with a 2.3% rise, reaching 5,319.3 points.
Meanwhile, the Dow Jones Industrial Average ascended by 1.8%, ending the day at 39,446.5. Remarkably, all sectors gained ground, with technology leading the rally, showcasing a robust 3.3% increase. In terms of economic indicators, the latest report from the Department of Labor revealed that weekly applications for unemployment insurance in the United States declined to their lowest level in four weeks.
This development was met with optimism, as Stifel noted, stating that "the report offers a welcome positive indication of labor market conditions, softening concerns of more precipitous weakness in the aftermath of a somewhat disappointing jobs report." Examining the broader context, July's nonfarm payrolls data released on Friday indicated that the US economy added fewer jobs than anticipated, compounded by an unexpected rise in the unemployment rate.
This mixture of data has stoked fears of a potential recession among analysts and investors alike. On the bond market side, the US two-year yield saw an increase of 2.9 basis points, reaching 4.03% on Thursday, whereas the 10-year rate experienced a slight uptick of 2 basis points, settling at 3.99%.
Turning to company-specific news, shares of Parker-Hannifin ($PH) surged by 11%, marking the second-largest gain on the S&P, following the company's fiscal Q4 financial results that surpassed Wall Street's expectations. In a similar vein, Eli Lilly ($LLY) raised its full-year outlook after delivering stronger-than-anticipated Q2 results, primarily driven by the soaring demand for its Mounjaro diabetes treatment and weight-loss drug Zepbound.
As a result, Eli Lilly's shares jumped 9.5%, securing the third-largest advance on the S&P. Furthermore, ON Semiconductor ($ON) saw its shares rise by 8.8% a day after Entegris ($ENTG) announced a long-term supply agreement with the chip manufacturer. In response, Entegris shares experienced an 8.6% increase as well.
Conversely, Monster Beverage ($MNST) faced a downturn, with its shares plummeting 11%, making it the biggest drop on the Nasdaq and the second-largest on the S&P. This decline came after the company reported Q2 results that failed to meet analyst estimates amidst weakening demand and consumer spending.
Additionally, Warner Bros. Discovery ($WBD) shares fell by 9%, marking the second-largest drop on the Nasdaq. The entertainment giant reported a troubling Q2 loss following a staggering $9.1 billion impairment charge, alongside revenues that didn’t meet market expectations. In the commodities market, West Texas Intermediate crude oil prices rose by 1.2%, settling at $76.12 a barrel.
Meanwhile, gold saw a 1.3% increase, reaching $2,463.20 per troy ounce, while silver also advanced by 2.1%, closing at $27.51 per ounce..