A slow start for stocks Thursday turned into a firm finish after the latest jobs data lowered expectations for another rate hike at next week's Fed meeting.
A bounce in several Big Tech stocks created tailwinds for the broader market, too, with all three benchmarks ending the day with solid gains.
Ahead of the opening bell, data from the Labor Department showed that initial jobless claims jumped 28,000 last week to 261,000. "The report on jobless claims released this morning came in much higher than Wall Street's estimates and was the highest weekly rate since October 2021," says Anthony Denier, CEO of Webull, a commission-free trading platform. "Typically, this should be a sign the economy is slowing down, which is bad for stocks, but it appears to have not had much of an effect on the markets."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Indeed, the tech-heavy Nasdaq Composite rose 1.0% to 13,238, the broader S&P 500 added 0.6% to 4,293, and the blue chip Dow Jones Industrial Average closed up 0.5% at 33,833.
Also fueling tailwinds for the broader market were several large-cap tech and communication services stocks, which jumped as Treasury yields retreated after Wednesday's big spike. Among the notable gainers were Apple (AAPL, +1.6%), Amazon.com (AMZN, +2.5%) and Netflix (NFLX, +2.4%).
GameStop stock spirals after earnings
On the flip side, original meme stock GameStop (GME) plunged 17.9% after the video game retailer reported earnings. GME said its first quarter net loss narrowed to $50.5 million from $157.9 million, even as net sales declined 10% year-over-year to $1.2 billion. The company also said that it fired CEO Matthew Furlong, with newly elected executive director Ryan Cohen "overseeing management" for now, according to the press release.
"We remain convinced that GameStop is doomed, with declining physical software sales and a shift of sales to subscription services and digital downloads sealing its fate," says Wedbush analyst Michael Pachter (Underperform, the equivalent of Sell). What's more, the analyst believes the "lack of clear direction and the callous termination of Mr. Furlong all but ensures that Mr. Cohen will have difficulty attracting a qualified replacement."
No bull market yet
Today's broad market gains will likely spark more headlines that the S&P 500 has entered a new bull market. Although the index is about 20% above its closing low from October 2022, "it takes more than a 20% gain off the low to proclaim the beginning of a new bull market," says Dan Burrows, senior investing writer at Kiplinger.com. As Burrows explains in his column "We Are Not in a Bull Market," a new bull market is not confirmed until the index surpasses its previous closing high.
With that in mind, investors seeking out the best stocks to buy would do well to continue to focus on high-quality companies. These can include those found among the best dividend stocks, the best blue chip stocks or the best Dow stocks – many of which tend to have sound fundamentals and are often steady long-term performers, regardless of what type of market we're in.
Related Content
-
New Trump Tax Bill: Five Changes Homeowners Need to Know NowTax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
The Smart Way to Retire: 13 Habits to Steal From the WealthyCheck out these practical strategies that anyone can adopt, not just the rich, and get closer to achieving your retirement dreams.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market TodayThe main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
