The Dow finished 0.6%, or 189 points, while the S&P closed 1% higher.
“Covid-related trends continue to show improvements both nationally and internationally, as vaccine doses continue to accumulate across the country,” said Paul Hickey of Bespoke Investment.
Bond yields, which rose recently due to concerns that rising inflation would force the Federal Reserve to raise rates sooner rather than later, have retreated. These fears were allayed in part by Wednesday’s inflation report, which matched economists ’expectations.
The ten-year US Treasury yield rose 0.01% (1.53%) at the close of trading on Thursday. Bond yields and prices move in opposition.
“It is becoming clear that investors are not sure what to do with stocks at these levels,” Fawad Razaqzada, a market analyst at Think Markets, wrote in a note to clients.
“Some still want to continue buying stocks, especially those sensitive to the economy, before the arrival of stimulus controls,” Razaqzada added, “while others are happy to reserve profits after a remarkable recovery during last year more or less “.
Thursday’s economic data also helped bolster optimism: weekly first-time demand for unemployment benefits was lower than economists forecast and also fell from the previous week. It could be a sign that the recovery in U.S. employment is finally gaining strength.
However, with 712,000 initial seasonally adjusted claims filed last week, the number of workers in need of benefits is even higher than during the peak of the Great Recession.