U.S. stocks experienced widespread gains as markets came to a close on Thursday. This rise came as a result of renewed investor confidence due to solid corporate earnings outweighing the threat that the new delta variant of the coronavirus poses to economic recovery.
While the S&P 500 rose by 0.4% as of 1:59 p.m. New York time, the Nasdaq 100 and the Dow Jones Industrial Average rose by 0.5% and 0.6% respectively.
Carter Henderson, portfolio manager at Fort Pitt Capital Group, explained during a phone call that the current market conditions are particularly favorable for equities and look to remain that way for the foreseeable future so long as company earnings remain strong. He further reflected on how the market has increased by 17% so far this year.
A large indicator of where the US economy is headed in terms of a pandemic-related recovery is the domestic job market. While the latest ADP employment report yielded underwhelming results, US services industries have undergone a record expansion. There has also been an incremental improvement in terms of unemployment figures.
“While jobless claims have been a bit erratic over the last few months, we’re starting to see less file for unemployment week over week, suggesting that more are taking jobs,” explained Mike Loewengart, managing director of investment strategy at E-Trade Financial. This shows that demand remains on a constant rise despite concerns over the delta variant.
