US stock market rallied on Thursday after a better-than-expected unemployment report eased worries about the slowing economy. A surge in Nvidia, Apple, Telsa, Intel and other big tech stocks led to a nearly 3% jump in Nasdaq.
The Dow Jones Industrial Average surged 683.04 points, or 1.76%, to 39,446.49, while the S&P 500 spiked 119.81 points, or 2.30%, to 5,319.31. The Nasdaq Composite ended 464.22 points, or 2.87%, higher at 16,660.02. The Nasdaq 100 surged more than 3%.
Nvidia stock price rallied 6.13%, while Advanced Micro Devices shares surged nearly 5.95%. Intel share price jumped 7.9% and electric vehicle (EV) maker Tesla shares rose 3.69%.
Among other major tech stocks, Apple shares gained 1.66%, Microsoft Corporation stock price rose 1.07%, Amazon shares added 1.86% and Alphabet stock climbed 1.92%.
Other leading gainers on Nasdaq 100 included Ar, Marvell, ON Semiconductor, Microchip, Broadcomm and Qualcomm shares that surged in the range of 6-10%.
Meanwhile, US stock index futures traded higher on Friday. Nasdaq 100 futures rose 0.3%, while futures tied to the Dow Jones Industrial Average were little changed.
The rally in the US stock market comes after the latest jobs data increased investors’ confidence in the economy, calming fears of a US recession.
Initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended August 3, the largest drop in about 11 months. Economists polled by Reuters had forecast 240,000 claims for the latest week.
Rate cut hopes
Moreover, increased hopes of interest rate cuts by the US Federal Reserve also supported the gains in US stocks.
Fed policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, and they will take their cues on the size and timing of those rate cuts not from stock-market turmoil but from the economic data. That was the shared message of three US central bankers speaking on Thursday, Reuters reported.
(With inputs from Reuters)
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HomeMarketsStock MarketsNvidia, Intel, Tesla, among other US tech stocks rally push Nasdaq 3% higher
