- The Dow Jones Industrial Average (DJIA) headlined a strong session for Wall Street on Thursday.
- Traders shrugged off another historic jobless claims report, with an additional 6.6 million Americans unemployed this week.
- Some investors are beginning to doubt the ongoing relief rally with many holding out for new lows.
The U.S. stock market secured another strong advance on Thursday, despite an economic bombshell of historic proportions. The Dow Jones Industrial Average (DJIA) soared nearly 500 points after this morning’s jobless claims revealed a further 6.6 million unemployed.
A gut-wrenching 16 million Americans have now filed for unemployment over the last three weeks. The figures came in just shy of JP Morgan’s 7 million estimate but way higher than the consensus 5 million. Beth Ann Bovino at S&P Global Ratings declared a full-blown recession.
These dismal numbers suggest another record-breaking April jobs report … America is now in recession and as it appears to deepen, the question is how long it will it take before the U.S. recovers.
Some investors think the stock market, which has climbed 25% from its March 23rd bottom, is in denial. Mark Cuban said he’s “surprised” at the relief rally and doesn’t think traders understand how deep this could go.
Dow Mounts Another Bullish Advance
The Dow Jones recovered from a wildly-volatile futures session to soar at the opening bell. By 9:50 am ET, the DJIA had rallied 452.75 points or 1.93% to 23,886.32.
This week has been marked by a strong relief rally as stocks bounce off the March 23rd lows, and the S&P 500 and Nasdaq rose in tandem with the Dow.
At last check, the S&P 500 was up 1.88%, while the tech-heavy Nasdaq had gained 1.45%.
6.6 million new jobless claims on Thursday
Thursday’s jobless claims report has become a weekly fixation since America implemented strict coronavirus lockdowns. The…