US Stocks Finish Higher as Tech Stock Gains Offset Weak Economic Data

The NASDAQ Composite finished at a record high on Thursday, with the run in heavyweight tech stocks also carrying the S&P 500 and Dow higher. Investors shrugged off downbeat U.S. economic data that affirmed the Federal Reserve’s view of a difficult road to economic recovery.

In the cash market on Thursday, the benchmark S&P 500 Index settled at 3385.51, up 10.66 or +0.36%. The blue chip Dow Jones Industrial Average finished at 27739.73, up 46.85 or +0.19% and the technology-based NASDAQ Composite closed at 11264.95.

Another Record Setting Week for NASDAQ and S&P 500

The NASDAQ clocked its 19^th record closing high since early June, when it confirmed its recovery from the coronavirus sell-off. Thursday’s record close was its 35^th so far this year compared with 31 record closing highs in 2019 and 29 in 2018.

Meanwhile, the benchmark S&P 500 Index completed its fastest recovery from a bear market this week, joining the NASDAQ in scaling new peaks. It also confirmed a bull market for the S&P 500 Index.

Economic Data Confirms Fed’s Gloomy Outlook

Stocks were pressured early in the session by data that showed initial jobless claims rose unexpectedly back above the 1 million mark last week after slipping below that level for the first time since the start of the pandemic.

The volatility in jobless claims followed the lapse of an extra $600 weekly unemployment benefit at the end of July and came as Democrats in Congress have failed to reach an agreement with the White House on extending it.

According to the minutes released on Wednesday, the Fed’s latest policy meeting gave a somber assessment of the U.S. economy as it grapples with the pandemic, but ruled out, for now, more dovish easing policy measures.

Separate data from the Philadelphia Fed showed a business conditions index fell more than expected in August.

Sectors and Stocks

Economically sensitive financial and energy sectors were some of the biggest percentage losers among the major S&P sectors.

Gains in Apple Inc. – the only publicly listed U.S. company to cross the $2 trillion market value milestone – Amazon.com Inc. and Microsoft Corp. underpinned the three main indexes’ gains as investors bet they would ride out the economic crisis.

Nvidia Corp. edged higher after posting better than expected quarterly sales forecast.

Intel Corp. rose after announcing a $10 billion share buyback plan.

L Brands Inc. advanced after reporting a surprise quarterly profit, boosted by strong demand for Bath & Body Works’ products as well as higher online sales of Victoria’s Secret lingerie.