US stocks kicked off Thursday on a positive note as investors absorbed the latest labor market report, revealing a marginal increase in unemployment claims.
The S&P 500 (^GSPC) maintained its proximity to an all-time high, closing in at 4,796.56 for the second consecutive day. The key index saw a modest uptick of approximately 0.2% at the opening bell, while the Dow Jones Industrial Average (^DJI) experienced a 0.1% rise. Meanwhile, the Nasdaq Composite (^IXIC), dominated by tech stocks, led the pack with a 0.3% gain.
As of now, the Nasdaq has soared over 44% in the current year, putting it on track for its best annual performance since 2003. Investors are eagerly eyeing the possibility of a ninth-straight week of gains, with the S&P 500 potentially achieving its lengthiest weekly winning streak since 2004.
The latest economic data unveiled a slight uptick in unemployment claims for the week ending December 23. Jobless claims climbed to 218,000, up from the previous week’s 205,000 and exceeding economists’ projections of 210,000.
Economists have been closely monitoring the labor market for signs of weakness that could signal a broader economic slowdown in 2024. However, Thursday’s data did little to escalate concerns.
In a note to clients, Jefferies US economist Thomas Simons remarked, “Businesses have been extremely reticent to let go of workers that they struggled to find over the last 3 years. We doubt that they will be able to hold on to everyone indefinitely, but they’re going to try…The chances of a soft landing in the labor market have increased, but a landing of some sort is coming for sure.”
Later in the morning, investors are anticipating fresh data on home sales, which could provide further insights into the trajectory of the economy.
In conclusion, as stocks continue their upward trajectory despite a slight increase in unemployment claims, investors remain vigilant, balancing optimism with a watchful eye on the evolving economic landscape. As the year draws to a close, market participants remain cautiously optimistic, navigating through economic indicators and developments in the labor market. The resilience of the stock market, especially the Nasdaq’s impressive performance, reflects the ongoing confidence among investors despite the nuanced economic landscape.
Source: Yahoo Finance
