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US stocks rose on Thursday as investors assessed a drop in jobless claims against data showing the trade deficit has widened.
The S&P 500 rose 0.3%, after the broad market index closed 0.5% lower on Wednesday. The Dow Jones Industrial Average also gained 0.3% and the Nasdaq Composite rose 0.1%.
New data on Thursday showed the U.S. trade deficit widened to $ 75.7 billion in June, more than economists had expected, with Americans buying more goods abroad. Meanwhile, jobless claims, seen as an indicator of layoffs, fell to 385,000, showing workers’ records stabilized at a high level in the summer after weeks of steadily declining.
Major stock indexes have faltered in recent days over fears the rebound will slow down and the Delta variant of Covid-19 will lead to an increase in cases. New data on Wednesday showed the private sector created half as many jobs in July than economists had expected. Despite the volatility, the S&P 500 is still hovering near its all-time high, driven by strong quarterly results from the largest companies.
“We’re pretty positive, we think the earnings data is very strong,” said Caroline Simmons, UK investment director at UBS Global Wealth Management. Stock markets may continue to climb 5% to 10% over the next year, she said.
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