US Markets Bounce Back, Powered By Tech Sector

The main US stock indexes regained their footing on Thursday after a three-day slide, buoyed by gains in technology stocks as the smallest weekly jobless claims since the start of a pandemic-driven recession lifted the mood.

Bitcoin clawed back some lost ground to trade near US$40,000 a day after a brutal selloff, helping renew appetite for risk. Shares rose in Crypto-exchange operator Coinbase Global, Crypto-miners Riot Blockchain and Marathon Digital Holdings.

"There's a big risk, regulatory risk, to crypto that's not fully appreciated," said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York. "The central banks have a monopoly on currency. And so we just think that it's a little bit surprising they haven't enforced that monopoly."

The number of Americans filing for new claims for unemployment benefits fell to 444,000 in the week ended May 15, down for the third straight time, suggesting job growth picked up this month, though companies still are desperate for workers.

Wall Street's main indexes fell on Wednesday, extending losses since, after minutes from the Federal Reserve's meeting last month indicated some policymakers thought it would be appropriate to discuss easing of crisis-era support, such as tapering bond purchases, in upcoming meetings if the strong economic momentum is sustained.

The Dow Jones Industrial Average rose 0.6 percent, to 34,084, the S&P 500 gained 1.1 percent to 4,159 and the Nasdaq Composite added 1.8 percent to 13,535.

"Right now really there is just one driver of the market, and that is the Fed and potential timing of tapering and quantitative easing," Hatfield added.

Signs of rising inflation have increased bets that the Federal Reserve may tighten its policy soon, hitting rate-sensitive growth stocks that set the Nasdaq on track for its fifth consecutive weekly drop. (Reuters)