Nasdaq Leads As US Stocks Partially Rebound

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2020-10-30 HKT 04:46

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  • Stocks were in positive territory most of the day as the US reported a 33.1 percent growth rate in the third quarter. Photo: AFP

    Stocks were in positive territory most of the day as the US reported a 33.1 percent growth rate in the third quarter. Photo: AFP

Tech shares led US stocks higher on Thursday ahead of a deluge of major earnings reports as US stocks rebounded following better economic data.

The tech-rich Nasdaq finished up 1.6 percent at 11,185, just moments before the release of earnings from Apple, Facebook and other tech giants.

The Dow Jones advanced 0.5 percent to 26,659, while the S&P 500 gained 1.2 percent to 3,310.

The gains came a day after major indices slumped more than three percent on worries about the coronavirus as France and Germany both announced sweeping new restrictions and the US case count continued to climb.

But on Thursday, stocks were in positive territory most of the day as the US reported a 33.1 percent growth rate in the third quarter, a stunning improvement following a similar drop in the prior quarter.

The record result was driven by consumer spending supported by a massive US$3 trillion in government aid, much of which has since expired.

In other data on Thursday, new applications for US jobless benefits fell to 751,000 for the week ended October 24, which was better than expected but still well above historical norms.

Analysts have cautioned that Washington's inability to approve a new stimulus package leaves the economy vulnerable in the fourth quarter, especially if the US coronavirus outbreak worsens.

"The resurgence in Covid-19 infections and failure to pass additional fiscal relief pose considerable downside risk to the economy," said Nancy Vanden Houten of Oxford Economics. (AFP)