The S&P 500 ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign that the pace of interest rate hikes could soon slow.
Wall Street’s major indexes have come under pressure in recent days, with the S&P 500 down 3.6% since the start of December on expectations of a longer rate hike cycle and dovish economic views from some top corporate executives.
Such thinking also hit the Nasdaq Composite, which posted four straight losses before Thursday’s advance on the tech-heavy index.
Stocks rose as investors cheered data showing the number of Americans filing for jobless benefits rose slightly last week, while jobless numbers hit a 10-month high in late November.
The report follows data last Friday that showed U.S. employers hired more workers than expected and raised wages in November, fueling concerns that the Fed may maintain its aggressive stance to tame decade-high inflation.
Data releases have recently affected markets, with investors lacking certainty about the Federal Reserve’s interest rate cut next week.
Such behavior means Friday’s producer price index and the University of Michigan survey of consumer sentiment will likely determine whether Wall Street can build on Thursday’s rally. “The market has to adjust to the fact that we’re moving from a stimulus-based economy — both fiscal and monetary — to a fundamentals-based economy, and that’s what we’re dealing with right now,” said Wiley Angell, chief market strategist at Ziegler Capital Management.
Source:-Yahoo News Dated Thu, December 8, 2022