Stocks snap back to health as financials, technology sectors lead.
U.S. stocks rebounded on Thursday, as President Donald Trump pared back expectations of an imminent missile strike on Syria.
The large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.8% to close at 2,663.99, with six of 11 sectors contributing to the rally. Financials gained 1.8%, while shares of information technology companies added 1.3% on average.
The Dow Jones Industrial Average (NYSEARCA:DIA) added 293.60 points, or 1.2%, to close at 24,483.05.
Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) gained 1% to 7,140.25.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) fell more than 8% to 18.56 on a scale of 1-100 Where 20 represents the historic average. The so-caller “fear index” implies greater calm in the financial markets than at any other time in two weeks.
Energy markets stabilized on Thursday following a week of torrid gains. U.S. West Texas Intermediate (WTI) futures climbed 29 cents, or 0.4%, to $67.11 a barrel on the New York Mercantile Exchange. ICE Brent futures settled at $72.07 a barrel.
In economic data, U.S. jobless claims fell by 9,000 to a seasonally adjusted annual rate of 233,000 for the week ended Apr. 7, the Department of Labor reported Thursday. Analysts had expected a decline to 230,000 for the week.
The Final Word: Stocks are gearing up for a strong end to the week. On Friday, attention shifts to corporate earnings. Analysts are expecting a Q1 earnings gain of more than 17%, marking the best quarter for warnings in seven years.