Tech Stocks Propel Market Surge Amid Positive Jobless Claims

The Nasdaq soared over 3% as U.S. stock markets rallied following a significant drop in jobless claims, alleviating labor market concerns. The S&P 500 rose more than 2%, bolstered by technology giants. Under Armour surged 19% after a surprise profit report. Dow Jones also experienced a substantial climb.

The Nasdaq surged more than 3% on Thursday as U.S. stocks rallied after jobless claims dropped more than expected, calming fears of a rapidly weakening labor market.

The S&P 500 rose over 2%, driven by technology megacaps. Communication services also saw gains, rising 2.5% in afternoon trading. Among the top performers in the S&P 500, Eli Lilly's shares jumped 9.5% following an improved annual profit forecast and $1 billion in sales for its weight-loss drug Zepbound in a single quarter.

New unemployment benefit applications fell beyond expectations, indicating a stable labor market. "Our reading on this is the labor market continues to be OK... The recession fears at this point are probably a little overblown," commented Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest in Elmhurst, Illinois.

Disappointing job numbers for July had previously spurred recession fears and market volatility. However, Thursday saw the Dow Jones climb by 721.77 points, or 1.86%, to 39,485.22; the S&P 500 increased by 124.91 points, or 2.40%, to 5,324.41; and the Nasdaq Composite rose by 485.10 points, or 3%, to 16,680.91.

As the second-quarter earnings season winds down, Under Armour's shares skyrocketed 19% after posting an unexpected first-quarter profit due to inventory cuts and reduced promotions. On the NYSE, advancing issues outpaced decliners by a 3.27-to-1 ratio, and by 2.71-to-1 on Nasdaq.

The S&P 500 recorded 6 new 52-week highs and 4 new lows, while the Nasdaq Composite saw 28 new highs and 162 new lows. (Additional reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Varun H K, Shinjini Ganguli, and Saumyadeb Chakrabarty)