- Global stocks climb higher as market jitters ease
- US stocks best trading day, driven by a surprising drop in unemployment claims that eased fears of a slowing economy
- Asian markets also saw gains
- This comes after a severe downturn in Japanese stocks earlier in the week, which had caused a global market sell-off
Global stocks climb higher as market jitters ease
US stocks had their best trading day since November 2022, driven by a surprising drop in unemployment claims that eased fears of a slowing economy. The S&P 500 surged 2.3%, the Dow Jones gained 1.8%, and the Nasdaq soared 2.9%. Asian markets also saw gains, with Hong Kong’s Hang Seng up 1.7% and South Korea’s Kospi rising over 1%.
This comes after a severe downturn in Japanese stocks earlier in the week, which had caused a global market sell-off. Analysts believe the lower-than-expected US jobless claims, which fell to 233,000 last week, helped stabilise markets.
“The latest jobless claims data, though not normally a major market event, supports the view that recent pessimism may have been overdone,” said a report by the chief investment office of UBS Global Wealth Management.
However, they caution that market volatility will likely continue, especially with the upcoming September US Federal Reserve policy decision, where rate cuts are being speculated.
“The market volatility is creating trading opportunities for investors over the short term,” said Peter McGuire from trading platform XM.com.
“It will be a bumpy ride over the election season and we all await the [US Federal Reserve] policy decision in September.”
