A strong start for “Wall Street” .. “Technology” shields stocks against the curse of unemployment

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Major US stock indices rose in early trading Thursday, despite an unexpected rise in weekly jobless claims.

The Standard & Poor’s 500 Index rose to a record high in early trading Thursday, supported by gains in technology stocks, a day after the Federal Reserve (US Central Bank) renewed its pledge to keep interest rates low until the economic recovery takes hold.

Main indicators

According to Reuters, the Dow Jones Industrial Average rose 23.6 points, equivalent to 0.07%, to open at 33,469.89 points.

Standard & Poor’s advanced ten points, or 0.25%, to record 4,089.95 points.

While the Nasdaq Composite Index increased 108 points, or 0.79%, to 13,796,892 points.

Unexpected rise in unemployment

The number of Americans filing for new unemployment benefits unexpectedly increased last week.

Experts believe that this increase often does not accurately reflect the rapid improvement in labor market conditions, as more sectors of the economy resume activity alongside the start of the fiscal stimulus package.

The US Labor Department said, on Thursday, that the total government unemployment benefits submitted for the first time reached an adjusted level in light of seasonal factors at 744,000 applications for the week ending April 3, compared to 728,000 the previous week.

Economists polled by Reuters had forecast 680,000 applications in the most recent week.

1 million jobs in March

And the government announced last week that the economy created 916,000 jobs in March, the highest level in 7 months.

Job vacancies increased to a two-year peak in February, but employment activity is still 8.4 million people below its peak in February 2020.

The labor market regained strength after a falter last December, thanks to the huge White House package to rescue from the pandemic, amounting to $ 1.9 trillion, and the acceleration of vaccination with Covid-19 vaccines, which allows the resumption of more service sector activities.





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