Wall Street breaks negative streak due to increase in unemployment aid requests in the US

The S&P 500 index closed higher on Thursday, breaking a five-session losing streak, as investors boosted the index after interpreting data showing a rise in US jobless claims as a sign that the pace of price rises interest rates could drop soon.

The main indices of Wall Street they had been under pressure in recent days and the S&P 500 it has lost 3.6% since early December on expectations of a longer rate hike cycle and pessimistic views on the economy from some top corporate executives.

Negativity had also influenced the Nasdaq Composite Index, which had posted four straight lower sessions before Thursday.

But investors calmed down a bit after data showed the number of Americans filing for jobless benefits rose modestly last week, while jobless rolls hit a 10-month high in late November.

“The market has to adjust to the fact that we’re moving from a stimulus-based economy, both fiscal and monetary, to a fundamentals-based economy, and that’s what we’re dealing with right now,” said Wiley Angell, Chief Market Strategist at Ziegler Capital Management.

The producer price index and the survey of consumer confidence from the University of Michigan on Friday and consumer price data for November next week will also be in the spotlight ahead of the Fed’s policy decision on December 14.

The S&P 500 gained 29.59 points, or 0.75%, to close at 3,963.51 units; Meanwhile he Nasdaq Composite it gained 123.45 points, or 1.13%, to 11,082 points. The Dow Jones Industrial Average it rose 183.56 points, or 0.55%, to 33,781.48 units.

Most of the 11 sectors of the S&P 500 rose, led by gains in technology segment stocks.

kg