Day Traders Diary
The major averages are rebounding from three straight days of losses as technology shares staged a comeback, while the latest jobless claims totaling a fresh pandemic-era low also boosted sentiment.The Dow Jones Industrial Average is up over 200 points or 0.61%. The S&P 500 gained 1.2% or 50 points. The tech-heavy Nasdaq Composite climbed 1.87% or 250 points as the so-called FAANG stocks all traded higher.
The number of first-time claims for unemployment benefits for the week ended May 15 came in at 444,000, the lowest since March 14, 2020, the Labor Department reported Thursday. Economist surveyed by Dow Jones had been expecting 452,000 new claims.
Tesla, chip stocks and other speculative parts of the market, which took a big hit in the previous session, bounced back on Thursday amid a recovery in bitcoin prices. The world's largest cryptocurrency jumped 9% to above $42,000 apiece after dropping suddenly to around $30,000 Wednesday, according to Coin Metrics.
However, bitcoin cut its gains and briefly turned negative on the day at around $38,660 after the Treasury Department said it is taking steps to crack down on cryptocurrency markets and transactions, and said it will require any transfer worth $10,000 or more to be reported to the Internal Revenue Service.
Coinbase shares popped 4% after Wedbush said to buy the crypto-exchange despite the volatility. Tesla rose 3%, while MicroStrategy climbed nearly 7%.
Despite Thursday's comeback, the Dow is still down 1% on the week. The average lost about 1% last week as the market rally to highs stalls. The S&P 500 has fallen 0.6% this week, while the Nasdaq is on pace to eke out a small gain for the week.
Shares of Cisco dropped 3% Thursday after the tech conglomerate issued weaker-than-expected earnings guidance for the current quarter.
Oatly shares soared 24% during the company's public market debut on Nasdaq Thursday.
On Wednesday, investors also digested the Federal Reserve's minutes from April that hinted at considering tapering its asset purchase programs in upcoming meetings.
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