Macro
U.S. stocks slightly up amid mixed sectors, as jobless claims fall to 222,000, signaling economic resilience.
U.S. stocks saw a slight uptick in early trading on Thursday, with the Dow Jones Industrial Average marginally increasing by 0.01% to 39,913.23, the NASDAQ Composite rising by 0.06% to 16,753.07, and the S&P 500 also gaining 0.06% to 5,311.26. This movement comes amidst a backdrop of mixed sector performances, where consumer staples shares led gains with a 1.1% rise, contrasting with a 0.4% decline in materials shares.
The U.S. labor market showed signs of resilience as initial jobless claims dropped by 10,000 to 222,000 for the week ending May 11, slightly better than the market estimates of 220,000. This decline in jobless claims, particularly after a seasonal spike in New York due to school breaks, underscores the ongoing strength of the U.S. labor market despite Federal Reserve Chair Jerome Powell's remarks on its gradual cooling.
In the equities market, notable movements included a significant surge in Lucy Scientific Discovery Inc. shares by 224% to $1.6750, and Greenwave Technology Solutions, Inc. shares jumping 77% to $0.1063. Conversely, KULR Technology Group, Inc. and Spire Global, Inc. saw declines of 26% and 24%, respectively, following disappointing financial results. In commodities, oil prices increased by 1.3% to $79.68, while gold and silver experienced declines, highlighting the diverse reactions across different asset classes to the current economic environment.
The global market response to U.S. economic indicators was mixed, with European shares mostly lower and Asian markets closing higher. Japan's economy contraction by 2.0% in the first quarter, worse than expected, did not deter the positive momentum in Asian stock markets. This contrast in global market reactions underscores the complex interplay of regional economic developments and their impact on investor sentiment worldwide.