Mega-cap shares of Apple Inc, Alphabet Inc, Microsoft and Amazon.com Inc climb more than 2%, also helped by a decrease in the performance of the 10-year Treasury bonds.
For its part, Tesla soared again by 8.7%, after recovering in the previous session after falling to a record low.
The Labor Department report showed initial claims for jobless benefits increased by 9,000, up to a seasonally adjusted figure of 225,000, in the week ending December 24. The report hinted at some easing in an otherwise tight labor market, bolstering hopes that the Fed will ease its aggressive monetary policy.
“Signs that the job market is starting to weaken are certainly evident,” said Peter Cardillo of Spartan Capital Securities LLC. “We are at the end of the year and of course the market has not performed well. We are seeing some bargain hunting today.”
The strength of the labor market and the strength of the US economy have fueled fears that rates will remain high for longer, despite the easing of inflationary pressures keeping hopes alive for smaller increases.
The Fed’s aggressive rate hikes hit equities this year, with the S&P 500 and Nasdaq down 19.6%, losing almost 33% of its value. Wall Street’s main indexes fell more than 1% on the day before and the Nasdaq hit a closing low for 2022, as rising COVID cases in China and geopolitical tensions added to fears of a likely recession in China. 2023.
Source: Ambito
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