US stocks closed higher on Thursday, with the S&P 500 hitting a new record. The euphoria in the market was triggered by positive macroeconomic data, promising financial reports of large companies, and stimulus optimism.
The S&P 500 index gained 0.7% to 4211.47, beating its previous record. Likewise, the Dow Jones Industrial Average climbed 0.7% to 34,060.36. The Nasdaq Composite grew by 0.2%, settling at 14,082.55.
A strong US GDP report, as well as the rapid economic recovery, instilled optimism in market participants. Thus, the US economy expanded by 6.4% in the first quarter of the year. Meanwhile, the number of jobless claims sank to the lowest level, unseen since the outbreak of the COVID-19 pandemic.
US President Joe Biden announced the American Families Plan to support citizens in child care, education, and family leave. Meanwhile, the Fed's chair Jerome Powell said that the regulator would hold rates steady until the labor market is back to full strength. All this provides additional support to the market in the short term.
Apple shares fell by 0.1% despite the fact that its profits more than doubled in the first quarter.
Facebook shares soared by 7.3%. The upswing in share price came after the social media giant posted impressive first-quarter results.
Qualcomm shares gained 4.5% after the chipmaker reported considerable revenue amid record demand for 5G mobile devices.
Shares of eBay plunged by 10% after the American e-commerce company gave disappointing current quarter guidance.
Meanwhile, 10-year bond yields increased to 1.639% from 1.621%. Notably, the indicator reached the two-weeks high of 1.688% on Thursday.
The STOXX Europe 600 dropped by 0.3%. The SSE Composite Index advanced 0.5%, and the Hang Seng index climbed 0.8%.