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Stock market today: Indexes climb as drop in jobless claims boosts investors' confidence
By Kelly Cloonan,
1 day ago
US stock indexes rose on Thursday as investors took in the latest jobless claims data.
Jobless claims from last week dropped 17,000, marking the biggest fall in claims in almost a year.
JPMorgan analysts raised expectations of a recession by the end of the year to 35%, up from 25%.
US stocks rose Thursday as investors were met with better-than-expected jobs data.
Last week's jobless claims fell 17,000 to 233,000, down from an 11-month high of 250,000 the week prior, according to Labor Department data released Thursday.
That's the biggest fall in unemployment filings in almost a year, clocking in below estimates of 240,000. The reading should give investors greater confidence in the labor market after last week's weak nonfarm payroll report for July sparked fresh concerns about a looming recession.
The data "could provide a boost for the market," Chris Zaccarelli, CIO for Independent Advisor Alliance, said in a Thursday note.
"The signs of slowing growth are obvious to all who care to look, but with a starting point of +2.8% GDP growth, it's hard to believe a recession has already begun. We are exercising caution but think that the panic that started earlier in the month was overblown," he added.
The 10-year Treasury yield rose after the report, increasing three basis points rise above 4%.
Meanwhile, JPMorgan analysts said they expect a 35% chance of a recession by the end of the year, up from their earlier figure of 25% at the start of July.
The next big data point for investors will be next week's inflation reading, with the July consumer price index report set to be released on August 14.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:
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