S&P 500 climbs to snap 5-day losing streak as investors assess recession risks
- US stocks climbed on Thursday, with the S&P 500 snapping a five-day losing streak.
- Markets had been weighed earlier by fears the Fed will keep rates higher for longer amid resilient economic data.
US stocks rallied Thursday, with the S&P 500 snapping a five-day losing streak, as an uptick in jobless claims contrasted with earlier strong economic data that raised fears of a hawkish Federal Reserve.
The Labor Department reported that claims for unemployment benefits increased 4,000 to 230,000 in the week ending December 3.
That came after Monday's strong service-sector report and last week's hot jobs report left investors weighing the odds of the central bank keeping rates higher for longer. More key economic data is expected next week, with November's inflation report to roll out Tuesday.
Markets are pricing in a 50-basis-point hike from the Fed at next week's policy meeting, following 375 basis points of increases so far this year.
Here's where US indexes stood as the market closed at 4:00 p.m. on Thursday:
- S&P 500: 3,963.51, up 0.75%
- Dow Jones Industrial Average: 33,781.48, up 0.55% (183.56 points)
- Nasdaq Composite: 11,082.00, up 1.13%
Here's what else is going on today:
- The Fed could raise rates to an "Armageddon" level, but stocks would have limited downside risk, JPMorgan said.
- Lawmakers called on Sam Bankman-Fried to testify before Congress or get subpoenaed.
- Coinbase CEO Brian Armstrong chimed in on the FTX debacle, noting it appeared a "massive fraud" was committed.
- Kevin O'Leary said he lost almost $10 million in the FTX collapse, though the exchange had paid him $15 million to be a spokesperson.
- Activision Blizzard stock fell as the FTC slapped Microsoft with a lawsuit for trying to acquire the video game giant.
- SPAC King Chamath Palihapitiya blamed the Fed for crushing the SPAC bubble, adding he wasn't responsible for the poor performance of the firms he brought public.
In oil, commodities and crypto:
- West Texas Intermediate oil fell 0.57% to $71.61 a barrel. Brent crude, the international benchmark, inched 0.14% higher to $76.26 a barrel.
- Gold ticked up 0.11% to $1,787.74 per ounce.
- The 10-year yield jumped 8 basis points to 3.491%.
- Bitcoin rose 2.6% to $17,255.57.
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- Project Tiger to complete 50 years of tiger conservation next month
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