Market Commentary - Foreign Markets
Firm rebound in US equities As on : 09-Aug-24  10:32

US equities rallied on Thursday after the Labor Department released a report showing first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended August 3rd, easing fears of an economic slowdown. The S&P 500 climbed 2.3% to mark its best day since November 2022, the tech-heavy Nasdaq 100 surged 3.1% and the Dow Jones jumped 683 points.

Data showed weekly initial jobless claims fell more than expected, easing fears of a significant slowdown in the world's largest economy. The report said initial jobless claims fell to 233,000, a decrease of 17,000 from the previous week's revised level of to 250,000.

The dollar index regained towards 103 mark on easing fears of US recession and reducing chances of an emergency rate cut. Meanwhile, in the bond market, treasuries extended their recent pullback in reaction to the initial jobless claims data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 3.997 percent.

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