Tech Stocks Lead U.S. Market Rebound
U.S. Stocks Rise Ahead of Jobs Report
Investors saw a positive uptick in U.S. stocks on Thursday as tech stocks bounced back, setting the stage for the eagerly anticipated monthly jobs report scheduled for Friday.
Initial Jobless Claims Increase
Recent data showed an unexpected rise in Americans filing for unemployment benefits, with claims reaching 221,000 for the week ending March 30. This surge, higher than the anticipated 214,000, signaled a potential weakening in labor market conditions.
Fed Speakers Maintain Wait-and-See Approach
Despite the challenging jobless claims data, Federal Reserve speakers reiterated the central bank’s patient stance on rate cuts. Richmond Fed President Thomas Barkin highlighted the Fed’s flexibility in waiting to adjust rates, citing less encouraging inflation data in recent months.
Tech Giants Drive Market Recovery
Major tech companies like Apple, Amazon, Microsoft, and Meta led the market rebound, with Meta surging over 4% to a record high following a price target upgrade from Jefferies. The firm predicted Meta could capture a significant share of ad revenue growth through generative artificial intelligence.
Positive Earnings Boost Levi Strauss and Conagra Brands
Levi Strauss saw a 15% increase after raising its annual earnings guidance, reflecting strong quarterly results driven by a direct-to-consumer strategy. Similarly, Conagra Brands surged over 5% as it raised its operating margin outlook due to robust sales growth from increased marketing efforts.
Nikola Excels in Deliveries; Hubspot Attracts Acquisition Interest
Nikola stock rose by 11% after exceeding delivery estimates for its hydrogen trucks in the first quarter. Additionally, Conagra Brands experienced a 7% increase in demand for its essential food items. Alphabet’s reported interest in acquiring Hubspot also boosted the latter’s stock by more than 10%.
With various positive developments in the market, investors are cautiously optimistic as they await further economic indicators and corporate updates.
