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US S&P closes at record on tech boost

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The US stocks climbed up on Thursday, 08 April 2021, with the major averages all ending in positive territory, while the S&P index reached at fresh record closing high, as weaker-than-expected jobless claims data bolstered the Federal Reserve's stance to keep interest rates lower for a longer period.

At the close of trade, the Dow Jones Industrial Average index advanced 57.31 points or 0.17% to 33,504. The S&P 500 was up 17.22 points or 0.42% to 4,097. The tech-heavy Nasdaq Composite Index added 140.47 points or to 1.03% 13,829.

Most of sectoral indices closed higher, with information technology sector added 1.42%, consumer discretionary sector rose 0.42%, materials sector added 0.16%, industrials sector added 0.21%, healthcare sector added 0.11%, and consumer staple sector added 0.07%, while energy sector fell 1.36%, real estate sector fell 0.56%, utilities fell 0.11%, communication services fell 0.08%, and financials sector edged down 0.01%.

Weekly initial jobless claims data showed a second straight rise, conflicting with the recent payrolls report, and buttressed the Federal Reserve's dovish policy stance to keep interest rates lower for a substantial period. Federal Reserve Chair Jerome Powell signaled on Wednesday the central bank is nowhere near reducing support for the U. S. economy, saying an expected rise in prices this year is likely to be temporary.

The softer data helped yields on the benchmark 10-year U.

S. Treasury note fall as low as 1.624%, its lowest level since March 26, as it continues to back away from a 14-month high of 1.776% hit in late March.

High-growth tech stocks have recovered in recent sessions as U. S. 10-year bond yield backed off from its 14-month peak following the Federal Reserve's repeated assurances that monetary policy is likely to remain unchanged for the foreseeable future. Apple Inc, Microsoft Corp, Alphabet Corp and Inc rose between 1% and 1.5% and were among the top boosts to the benchmark index.

Tesla shares gained 1.9% on the Biden administration's US$174 billion proposal to boost electric vehicles. The Dow Jones index closed up by 57 points or 0.2%.

ECONOMIC NEWS: US Initial Jobless Claims Edge Higher- US initial jobless claims edged up to 744,000 in the week ended April 3rd, an increase of 16,000 from the previous week's revised level of 728,000, according to a report released by the Labor Department on Thursday. Jobless claims rose for the second straight week after falling to a one-year low of 658,000 in the week ended March 20th.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, April 09 2021. 09:26 IST