Dow jumps 400 points, Nasdaq adds more than 2% to cut two-day losing streak
U.S. stocks rose Thursday after an intraday comeback as the three major indexes each broke two-day losing streaks.
The Dow Jones Industrial Average added 435.05 points, or 1.3%, to close at 33,248.28. The S&P 500 gained 1.8% to 4,176.82. The tech-heavy Nasdaq Composite rose 2.7% to 12,316.90.
All three averages are now in pace with a positive week. The Dow is up 0.1%. The S&P 500 edged up 0.5% and the Nasdaq Composite rose 1.5% since the start of the week.
“The bearish sentiment remains exaggerated, and much of the earnings warnings ahead should already be priced in. Stocks should start to rise this summer as economic activity moderates,” said Edward Moya, senior analyst at OANDA.
The indices are now well off their lows for the year. The Dow Jones is 8.5% higher. The S&P 500 is up 9.6% and the Nasdaq Composite rebounded 11.6% from their respective 52-week lows.
Thursday saw another turbulent session on Wall Street with stock averages swinging between losses and gains. The Dow is down more than 300 points to session lows.
“The market is on pins and needles waiting to see if inflation will come down and give us a break from the Fed’s rate hike regime. That’s why we have this turmoil. This is a time of great uncertainty,” Barry Bannister, Stifel’s chief equity strategist, said.
Elsewhere, Microsoft has warned that revenue and profit this quarter will be below analysts’ estimates. The stock initially fell, but recouped its losses to close with a 0.8% gain on the day.
Other tech names rose and boosted the Nasdaq. Nvidia gained 6.9%. Zoom increased by about 4.3% and Tesla added nearly 4.7%.
Meta platforms edged up 5.4% a day after Sheryl Sandberg announced she was stepping down as chief operating officer.
Traders also analyzed corporate earnings results. Shares of pet retailer Chewy jumped about 24% after the company reported strong quarterly results. Meanwhile, Hewlett Packard Enterprise fell 5.2% following slight misses in both profit and revenue.
Job growth is slowing
Investors eyed jobs data showing the slowest pace of job creation in the pandemic-era recovery. Private sector employment rose just 128,000 in May, ADP reported Thursday, well below the Dow Jones estimate of 299,000. In another report Thursday, initial jobless claims last week fell and were lower than expected, according to the Labor Department.
The closely watched jobs report for May is due out on Friday morning. Economists expect 328,000 nonfarm payrolls to have been added in the past month, down from 428,000 in April.
Read the coverage of the mercado de hoy en español here.