US stocks jump as traders put bank crisis behind them and brace for more inflation data
- US stocks marched higher on hopes that global banking turmoil has finally settled.
- The S&P 500 notched gains on Thursday, hitting a three-week high intraday.
US stocks climbed on Thursday as traders continued to shake off concerns around the health of the global banking system following this month's string of collapses.
The S&P 500 hit a three-week high intraday, and the Nasdaq charged deeper into bull-market territory while on pace for its second-best quarter in a decade.
Initial filings for unemployment insurance ticked higher last week, but remain largely low amid a resilient labor market. Meanwhile, investors are looking toward personal consumption expenditures data on Friday for a gauge on inflationary pressures in the economy.
"Collectively, financial markets are pricing in the best of both worlds – a recession that allows rates to be low and brings inflation down sharply, yet one that does not have a massively negative effect on corporate earnings," Ajay Rajadhyaksha, global chairman of research at Barclays, said in a Thursday note.
Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:
- S&P 500: 4,050.83, up 0.57%
- Dow Jones Industrial Average: 32,859.03, up 0.43% (141.43 points)
- Nasdaq Composite: 12,013.47, up 0.73%
Here's what else happened today:
- The FDIC is reportedly looking to fill a $23 billion hole from the failures of Silicon Valley Bank and Signature Bank, which could push large banks to cover a larger-than-usual share of costs.
- Kevin O'Leary said regional bank shares are "going to zero for sure."
- "Dr. Doom" economist Nouriel Roubini predicted a "crypto apocalypse is coming," this time at the hands of the top US securities regulator.
- US stocks could close this year 14% higher because the Fed will pause rate hikes amid continued banking turmoil, according to legendary investor Ed Yardeni.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil up 1.82% to $74.3 per barrel. Brent crude, oil's international benchmark, increased 1.2% to $79.22 a barrel.
- Gold edged 0.8% higher to $2,000 an ounce.
- The yield on the 10-year Treasury dipped 2 basis points to 3.47%.
- Bitcoin fell 1.43% to $28,023, while ether declined 1.44% to $1,783.
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