U.S. Stocks Surge: Jobless Claims Drop Spurs Market Rally

U.S. stocks soared on Thursday, largely driven by a sharper-than-expected drop in jobless claims. The Nasdaq and S&P 500 both ended over 2% higher, alleviating fears of a rapidly weakening labor market. Notable gainers included Eli Lilly and Under Armour, with significant jumps in their stock prices.

U.S. stocks surged on Thursday, with the Nasdaq and S&P 500 each gaining over 2%, following a steeper-than-anticipated decline in jobless claims, which eased concerns about a swiftly deteriorating labor market. All major sectors in the S&P 500 recorded gains, spearheaded by technology and communication services.

Among the notable gainers, Eli Lilly shares leapt 9.5% after the pharmaceutical company raised its annual profit forecast and reported over $1 billion in sales for its weight-loss drug Zepbound within a single quarter. Meanwhile, new applications for unemployment benefits dropped more than expected, an encouraging sign for the economy.

This week's crucial data point highlights the labor market's resilience, according to Paul Nolte, a senior wealth advisor and market strategist. The Dow Jones Industrial Average climbed 683.04 points, or 1.76%, to 39,446.49; the S&P 500 rose 119.81 points, or 2.30%, to 5,319.31; and the Nasdaq Composite added 464.22 points, or 2.87%, to 16,660.02.

(With inputs from agencies.)