U.S. stocks rose on Thursday, led by a rebound in tech stocks as investors tried to salvage the last two trading days from a brutal year for markets.
The S&P 500 (^GSPC(gained 1.7%, snapping two days of losses, while the Dow Jones Industrial Average)^ DJI) jumped nearly 350 points, or 1.1%. The technology-intensive Nasdaq composite (^IXIC) jumped 2.6%. The moves come after all three major averages cleared more than 1% in the previous trading session.
tech giants Megacap Apple (AAPL), Amazon (AMZN) and Alphabet (GOOG, GOOGL) all gained 2.8%, helping lift the broader market after a massive sell-off over the past two days. The risky trade this week saw Apple drop below $130, which investors flagged as a key technical level. Meanwhile, Amazon becomes the third FAANG+ stock — with Meta (META) and Netflix (NFLX) – to erase its pandemic gains and close below its March 2020 COVID crash low on Tuesday.
Netflix (NFLX) rose 5.1% from a seven-week low on the heels of a two-step upgrade by CFRA analyst Kenneth Leon to buy-sell.
Investors continued to see a rally in Tesla (TSLA) after the stock snapped a seven-day losing streak on Wednesday following a multi-session selling spree over concerns over its China factory shutdown. Shares rose 8.1% on Thursday.
Rivian electric vehicle peers (SHORE), Lucid (LCID), and Nio (nio) all picked up alongside Tesla after electric car makers have been under pressure all week.
Cal Maine Foods (CALM) shares fell 14.5% even as the egg producer reported fiscal second-quarter earnings beat analysts’ estimates, with revenue jumping 110% from a year ago, l inflation and bird flu driving up egg prices.
Elsewhere on Thursday, biotech company Kala Pharmaceuticals (Kala) climbed 99%, extending a push after the the stock quadrupled on Wednesday after the acceptance by the Food and Drug Administration of the Company’s Investigational New Drug Application for the treatment of a rare eye disease.
On the economic data front, jobless claims rose to 225,000 in the week ending Dec. 21. 24. From the previous week’s reading of 216,000, the The Department of Labor said Thursday. The print came in part with consensus estimates from economists polled by Bloomberg.
In other markets, oil extended its decline after its recent rally, with West Texas Intermediate (WTI) crude futures – the US benchmark – settling at $78.39 on Thursday.
Yields on US Treasuries fell and the US dollar index also retreated.
Selling pressures in December, spurred by concerns about rising interest rates and an impending economic slowdown, continued through the end of the month and put a damper on the year-end seasonal rally which usually occurs on the last trading days of the year.
“Many factors have historically driven the traditional favorable environment for year-end stock market rallies, such as holiday bonus investing, seasonal optimism among consumers and investors, and tax considerations,” the CEO said. of AXS Investments, Greg Bassuk, in a note. “However, with the dismal performance of stocks and bonds in 2022 set to continue into 2023, along with lingering inflation concerns, uncertain Fed policy and ongoing geopolitical tensions, investors will receive no holiday gifts this year. for their wallets.
US and global stocks remain on course for their worst decline since the 2008 financial crisis.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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