Wednesday marked another day of declines for the stock market indices, furthering the damage done by the sharp drop off following a negative unemploy
Wednesday marked another day of declines for the stock market indices, furthering the damage done by the sharp drop off following a negative unemployment report.
It looked like the market was headed for a bear trend as markets opened on Thursday, but then the trend swiftly switched up and all of the stock market indices gained throughout trading on Thursday.
The Dow Jones Industrial Average dropped 0.60% on Wednesday but then gained 1.33% on Thursday after the market opened up. The S&P 500 likewise had a rough day Wednesday, falling 0.77% but then it recovered on Thursday with a 1.82% gain. The Nasdaq Composite had fallen on Wednesday as well, declining by 1.05%, but then it turned that around with a 2.32% increase on Thursday.
We know why the markets declined on Monday and again on Wednesday as the unemployment report is still impacting the market. However, investors are pointing to the jobless claims report that came out this week as the driving force behind the recovery.
Jobless Claim Report Impact
Last week, fewer Americans were filing for jobless claims than the previous week. That is excellent news for the economy and for the stock market, the latter of which was severely impacted by a recent monthly unemployment report.
Jobless claims are dropping for now, down to just 233,000 this week, which is a drop of 17,00 from the previous weeks. That positive information has allowed the stock markets to soar today, but the bull trend may not hold.
Investors are looking for a good reason to continue investing after the recent market downturn, and a positive jobless claims report is exactly what was needed. This is only the weekly report, though, and it will not hold as much value as the recent monthly report that caused so much trouble.
This week’s report was examined very closely after last week’s troubles, and the jobless claims reports are likely to be a source of intense interest for the coming weeks as well. They will probably be used as a major indicator to tell where the stock market will head.
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