- US stocks edged higher on Thursday after weekly jobless claims data showed continued resilience in the US labor market.
- Jobless claims fell to 191,000 last week, below economist estimates of 197,000.
- With the Fed's rate hike out of the way, investors are now laser focused on the stability of the US banking sector.
US stocks jumped on Thursday as the US labor market continued to show signs of remarkable resilience despite ongoing rate hikes from the Federal Reserve and a recent banking crisis.
Weekly jobless claims fell 1,000 from the prior week to 191,000, below consensus estimates of 197,000. The strength in the labor market continues even as high-profile tech companies like Amazon and Meta Platforms announce further steep job cuts.
Thursday's stock market gain helped erase some of the losses sparked by US Treasury Secretary Janet Yellen on Wednesday, in which she told Congress that blanket FDIC insurance coverage for all banks "is not something that we have looked at... in any way." Stocks also reacted poorly Thursday on comments from Federal Reserve Chair Jerome Powell pushing back on the idea that the central bank could start easing monetary policy this year.
US bank stocks like First Republic and PacWest Bancorp jumped in Thursday trades, as investors continue to assess their recent liquidity raises and the possibility for further contagion from the collapse of Silicon Valley Bank.
Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Thursday:
- S&P 500: 3,970.98, up 0.86%
- Dow Jones Industrial Average: 32,223.07, up 0.6% (192.96 points)
- Nasdaq Composite: 11,821.77, up 1.31%
Here's what else is happening this morning:
- Bill Ackman warned the US economy is heading for a "train wreck" after the Fed hiked interest rates for the ninth time in a row on Wednesday. Ackman also slammed Janet Yellen's recent comments related to FDIC deposit insurance.
- Gisele Bündchen said the was "blindsided" by the collapse of FTX last year. Bündchen and her ex-husband, Tom Brady, were top equity holders of the crypto exchange.
- Coinbase stock fell 20% on Thursday after the company disclosed that it received a Wells notice from the SEC, indicating that it could be sued by the agency for its crypto staking practices.
- Shares of Block plunged 15% on Thursday after Hindenburg Research said it was shorting the company, arguing that the payments app helps facilitate "frictionless fraud."
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 0.42% to $70.60 per barrel. Brent crude, oil's international benchmark, dropped 0.40% to $76.38.
- Gold rose 1.34% to $1,975.70 per ounce.
- The yield on the 10-year Treasury sank 11 basis points to 3.47%.
- Bitcoin was flat at $27,431, while ether jumped 0.58% to $1,751.