Nasdaq Hits Record High Despite Grim Jobs News

Gains in Apple – the only publicly listed US company to cross the US$2 trillion market value milestone – Amazon.com and Microsoft underpinned the three main indexes' gains as investors bet they would ride out the economic crisis.

The Dow Jones Industrial Average ended up 0.17 percent at 27,740, the S&P 500 gained 0.32 percent, to 3,385.5 and the Nasdaq Composite added 1.06 percent to 11,265.

Stocks had opened lower on data that showed jobless claims rose unexpectedly back above the million mark last week after slipping below that level for the first time since the start of the pandemic.

Separate data from the Philadelphia Fed showed a business conditions index fell more than expected in August.

The volatility in jobless claims followed the lapse of an extra US$600 weekly unemployment benefit at the end of July and came as Democrats in Congress have failed to reach an agreement with the White House on extending it.

"Investors are looking through this downturn towards a point where we will begin to get a recovery especially with the Federal Reserve backstopping the companies," said Brian Reynolds, chief market strategist at Reynolds Strategies.

"Whether it's right or wrong, that's the way it is. Though, I think the market is getting a little too exuberant," he added.

Nasdaq clocked its 19th record closing high since early June, when it confirmed its recovery from the coronavirus sell-off. Thursday's record close was its 35th so far this year compared with 31 record closing highs in 2019 and 29 in 2018.

Despite signs that parts of the economy are still far away from pre-pandemic levels, the benchmark S&P 500 index completed its fastest recovery from a bear market this week, joining the Nasdaq in scaling new peaks. It also confirmed a bull market for the S&P 500.

Economically sensitive financial and energy sectors were some of the biggest percentage losers among the major S&P sectors.

Nvidia Corp was little changed at US$485.64 after posting better than expected quarterly sales forecast. Intel Corp rose 1.7 percent to US$49.17 after announcing a $10 billion share buyback plan.

Shares of Tesla surged past the US$2,000 mark on Thursday for the first time as the electric car maker extended its recent rally ahead of an upcoming share split. (Reuters)