On Thursday, the S&P 500 experienced a 0.4% increase, the Dow climbed by over 100 points, and the Nasdaq saw a 0.7% uptick. This performance came as investors processed a mix of economic data and a positive shift in US-China relations. In a significant development, Presidents Trump and Xi engaged in a phone conversation, agreeing to rekindle trade negotiations while reportedly settling a critical issue concerning rare earth exports.
On the economic front, initial jobless claims unexpectedly rose to 247,000, marking the highest level since October 2023 and signaling potential weaknesses in the labor market. Additionally, unit labor costs increased more than initially estimated, heightening inflationary concerns. Investors are now keenly awaiting Friday's jobs report for further economic insights.
In the tech sector, most large-cap stocks traded higher. Nvidia increased by 0.9%, Microsoft by 0.8%, Apple by 0.8%, Amazon by 2.5%, Meta by 0.7%, and Alphabet by 1.1%. However, Tesla shares declined by 3.5%, affected by weaker sales in Europe and CEO Elon Musk's public critique of Trump's tax legislation.
