Dow Shoots Higher, But Trump’s ‘Nuclear Option’ Could ‘Derail’ Trade Deal
The Dow marched toward a substantial recovery on Thursday, even as analysts warned that President Trump had likely derailed the US-China trade deal. | Source: Brendan Smialowski / AFP
By CCN: The Dow crept to moderate gains on Thursday, ignoring analyst warnings that President Trump’s latest assault on China threatens to “derail” the trade deal and leave the two economic goliaths locked in an endless trade war.
Dow Grinds Toward Substantial Recovery
All three major US stock market indices recorded substantial gains during the Thursday morning trading session. The Dow Jones Industrial Average climbed 133.14 points or 0.52% to hit 25,781.16, the S&P 500 added 0.54% to rebound to 2,866.32, and the Nasdaq rose 0.48% to 7,859.53.
On Wednesday, the Dow had gained 115.97 points or 0.45% to recover to 24,648.02. The S&P 500 closed at 2,850.96 for a gain of 16.55 points or 0.58%, and the Nasdaq jumped 87.65 points or 1.13% to 7,822.15.
Labor Market Remains Tight as Jobless Claim Drop Surprises Economists
The stock market sought to extend those gains amid a strengthening labor market.
According to Labor Department statistics published on Thursday, initial jobless claims fell 16,000 to a seasonally adjusted 212,000 for the week ended May 11, down from a four-week moving average of 225,000 a week prior. The figure was moderately better than the 220,000 claims economists had expected.
Analysts believe this strong labor will data bolster the economy, even as trade war-induced volatility tests the mettle of both domestic and foreign stock markets.