On Thursday, US benchmark equity indexes experienced a notable upswing, significantly influenced by the latest data on weekly jobless claims, which alleviated concerns regarding the economic landscape. The Nasdaq Composite saw a remarkable surge, climbing 2.9% to settle at 16,660. In parallel, the S&P 500 also enjoyed a healthy increase, ascending 2.3% to 5,319.3, while the Dow Jones Industrial Average rose by 1.8%, reaching 39,446.5.
Across the board, all sectors closed in positive territory, with technology leading the charge with an impressive gain of 3.3%. In the context of economic developments, the Department of Labor reported a decline in weekly applications for unemployment insurance, marking the lowest level in four weeks.
This report has been described by Stifel as "a welcome positive indication of labor market conditions, softening concerns of more precipitous weakness in the aftermath of a somewhat disappointing jobs report." Looking back at July's nonfarm payrolls data, it was revealed that the US economy added fewer jobs than anticipated, while the unemployment rate saw an unexpected rise, raising fears of a potential recession.
In the realm of financial indicators, the two-year yield in the US witnessed an increase of 3.5 basis points, reaching 4.03%, with the 10-year rate following suit by climbing 2.4 basis points to 3.99%. Turning to corporate news, shares of Parker-Hannifin, represented by the ticker symbol $PH, skyrocketed nearly 11%, making it the second-top gainer within the S&P 500 after the company reported fiscal fourth-quarter financial results that surpassed Wall Street's expectations.
Similarly, Eli Lilly, or $LLY, raised its full-year outlook, fueled by stronger-than-expected second-quarter results driven by rising demand for its Mounjaro diabetes treatment and weight-loss drug, Zepbound. The drugmaker's shares surged by 9.5%, positioning it among the top performers on the S&P 500.
ON Semiconductor, denoted by $ON, also recorded substantial gains, climbing 8.8%, while Entegris, with the ticker $ENTG, announced a long-term supply agreement with the chipmaker, resulting in its shares closing 8.6% higher on Thursday. Conversely, the energy drink manufacturer Monster Beverage, indicated by $MNST, faced a significant decline, with shares plummeting 11%, marking it as the worst performer on the Nasdaq, and the second-worst on the S&P 500.
This downturn followed the company's second-quarter results, which fell short of analysts' estimates due to a reduction in demand and consumer spending. Warner Bros. Discovery, marked by the symbol $WBD, was also among the steepest decliners, falling 9% on both the S&P 500 and the Nasdaq. The media and entertainment behemoth reported a second-quarter loss alongside a staggering $9.1 billion goodwill impairment charge, with revenue also dipping below expectations.
In commodity news, West Texas Intermediate crude oil prices advanced by 1.2% to reach $76.11 a barrel. Gold prices also saw gains, rising 1.3% to $2,465 per troy ounce, while silver increased by 2.4%, trading at $27.6 per ounce. In summary, the backdrop of economic indicators, alongside corporate performance, has significantly influenced market movements, reflecting investor sentiment and outlook for future growth..