A rally in tech shares drove the Nasdaq index higher on Thursday, with U.S. weekly jobless claims dipping below 2 million for the first time since mid-March bolstering economic recovery optimism from the COVID-19 shutdown-driven slump.
The NYSE FANG+ Index, which includes Facebook Inc, Apple, Amazon.com Inc, Netflix and Alphabet Inc, hit an intraday record high in morning trading.
Wall Street’s main indexes have recovered sharply from their March lows and the tech-heavy Nasdaq index is now only 1.3% away from surpassing its all-time closing high hit in February.
A report from the Labor Department showed new claims for state unemployment benefits totaled 1.877 million for the week ended May 30, down from 2.126 million in the prior week. Economists polled by Reuters had forecast 1.8 million initial claims in the latest week. The focus will now shift to the closely watched employment report for May, due Friday, which is expected to show unemployment rate rocketing to 19.8%, a post-World War Two record.
The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 29 new highs and one new low.
MacDailyNews Take: In the full article, Christopher Grisanti, chief equity strategist at MAI Capital Management, is quoted as saying, “It’s really important to realize that U.S. equity investors have been given a great gift in the middle of what is probably the deepest recession in 80 years.” Ain’t that the truth!
Here’s to more recovery optimism – we’re all going to need as much positive sentiment as we can generate!