Stocks rose on Thursday as investors headed into the final trading days of 2022.
The Dow Jones industrial average rose 345.09 points, or 1.05%, to 33,220.80, recovering almost all of its losses from the previous session. The S&P 500 rose 1.75% to 3,849.28 and the Nasdaq Composite rose 2.59% to 10,478.09.
The Dow and S&P were up slightly for the week, up 0.05% and 0.12%, respectively. The Nasdaq is on track for a 0.19% loss.
Louis Navellier, founder and chief investment officer of growth investment firm Navellier & Associates, called Thursday’s moves “a short one-day version of the Santa rally.”
“We’re overdue for a rebound, and the recent weakness could be explained by further tax loss selling once the Santa rally doesn’t materialize,” he said. “We’ll have more volatility in the New Year with plenty of uncertainty about whether a soft landing is possible, or how much the Fed won’t decide if we’re heading into a deep recession.”
Apple shares rebounded to 2.83% after four straight days of losses.
Markets rose early Thursday after the Labor Department Unemployment claims are reported to have increased Since last week, amid efforts by the Federal Reserve to cool the economy and especially the labor market.
According to the report, the number of first-time filings for unemployment benefits was 225,000 in the week ending December 24. That was an increase of 9,000 from the previous week and slightly higher than the Dow Jones estimate of 223,000.
“The jobs report showed a moderate increase in jobless claims, in line with expectations and provides evidence that a soft landing is possible,” said Jason Blackwell, chief investment strategist at The Colony Group.
Market action follows a Wide sale During Wednesday’s regular session, fears of a recession weighed on investor sentiment for a losing month and year. The Dow lost 365.85 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq Composite fell 1.35%.
Major averages are heading for the worst year since 2008. The Dow lost 8.58%, while the S&P 500 fell 19.24%. Meanwhile, the Nasdaq was the laggard of the third, falling 33.03% as investors dumped growth stocks amid rising interest rates.
“Investors are anticipating an economic slowdown as early as 2023, evidenced by three quarters of S&P 500 earnings declines and a continued defensive sector tilt,” said Sam Stovall, chief investment strategist at CFRA Research. “The severity of the recession remains in question. We expect it to be mild.”