Nasdaq closes at record as traders cheer strong jobs report
- US equities rose on Thursday after June's jobs report trounced estimates and lifted hopes for a swift economic recovery.
- The tech-heavy Nasdaq composite closed at a record high.
- American businesses added 4.8 million payrolls last month, according to the Bureau of Labor Statistics, handily beating expectations of a 3 million increase.
- The unemployment rate fell to 11.1%, below the anticipated reading of 12.5%.
- Tesla surged to a record high after it said it delivered more vehicles than expected in the second quarter.
- Oil prices climbed, with West Texas Intermediate crude gaining as much as 2.3%, to $40.74 per barrel.
- Watch major indexes update live here.
US stocks gained on Thursday after June jobs data beat expectations and further fueled hopes for a near-term economic rebound. The tech-heavy Nasdaq composite closed at a record high.
The economy added 4.8 million nonfarm payrolls last month, the Bureau of Labor Statistics announced on Thursday morning. That exceeded the consensus economist forecast of 3 million job additions.
The unemployment rate fell to 11.1% — lower than economists' forecast of 12.5% — from 13.3% in May.
Here's where US indexes stood at the 4 p.m. ET market close on Thursday:
- S&P 500: 3,130.02, up 0.5%
- Dow Jones industrial average: 25,827.42, up 0.4% (92 points)
- Nasdaq composite: 10,207.63, up 0.5%
The jobs report revealed healthy hiring activity during economic-reopening efforts. However, its data doesn't cover recent weeks when coronavirus cases have soared in several states. The surge has some experts fearing a second bout of economic pain.
"High-frequency data suggests that the labor market strength had started to wane later in the month, perhaps as households and businesses grew increasingly cautious about the rise in infection rates," said Seema Shah, the chief strategist at Principal Global Investors.
She added: "Indeed, now, with the closings having been reversed or paused across 40% of the US, July's job report may paint a much weaker story."
Indexes trimmed gains through the morning and largely traded flat in the afternoon following the positive data.
Jobless claims fell to 1.43 million in the week that ended on Saturday, a slight decline from 1.48 million the prior week. Continuing claims, which track ongoing unemployment benefits, came in at 19.3 million for the week that ended on June 20.
Tesla stock skyrocketed to a record high after it reported second-quarter deliveries that came in above estimates. The automaker said it delivered roughly 90,650 vehicles in the period, while analysts surveyed by FactSet had expected 72,000 deliveries, according to CNBC.
Lemonade, a tech-driven insurance company, spiked as much as 132% in its trading debut on Thursday. The SoftBank-backed firm raised $319 million in the initial public offering, bringing its total valuation to $1.6 billion.
Boeing helped lift the Dow before paring gains later in the session. Shares bounced after the company completed recertification flights of its troubled 737 Max model.
Oil prices climbed. West Texas Intermediate crude climbed as much as 2.3%, to $40.74 per barrel. Brent crude, the international benchmark, gained 2.9%, to $43.23 per barrel, at intraday highs.
Thursday's upswing followed a mixed session for equities. Stocks whipsawed on Wednesday as investors mulled positive COVID-19 vaccine trial results from Pfizer and soaring case counts across the US. June payroll data from ADP came in lower than hoped for, and some feared that Thursday's jobs report would disappoint.
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