Stocks opened higher on Thursday, providing a glimmer of hope after a week of losses. With more than half of the trading week behind us, the three major indexes were on track to see losses, with the Dow leading the way down by 1.7%. The S&P 500 and Nasdaq Composite also slipped by 0.8% and 0.6%, respectively.
In other economic news, initial filings for unemployment compensation increased more than expected last week, hitting their highest level since late January. Jobless claims totaled 221,000 for the week ended March 30, up 9,000 from the previous week. Continuing claims edged lower to 1.79 million.
The Commerce Department also reported that the trade deficit rose to $68.9 billion in February, the highest imbalance on the goods and services measure since April 2023.
Planned layoffs in March accelerated at their fastest pace in more than a year, according to Challenger, Gray & Christmas. The outplacement firm reported that announced job cuts for the month totaled 90,309, a 7% increase from February and slightly above the same month a year ago.
Meanwhile, oil prices climbed to their highest level since October 2023, driven by investor concerns about supply disruptions due to conflict in the Middle East. Brent futures were trading at $89.53 per barrel, while West Texas Intermediate futures were at $85.62 per barrel. Spot gold also hit a fresh high before giving up some gains, trading at $2,300.2 per ounce.
In the after-hours market, Levi Strauss & Co shares jumped 8% after the company posted an earnings and revenue beat in the first quarter. Blackberry and Simulations Plus also saw gains after announcing better-than-expected quarterly results.
Overall, the S&P energy sector closed at a new record, the first time since 2014, with the sector up nearly 16% in 2024. Gold, Japanese stocks, and U.S. stocks were all reaching “escape velocity,” according to one strategist, signaling positive momentum in the markets.
Despite the challenges faced earlier in the week, the positive opening on Thursday provided some optimism for investors as they navigated through a volatile market landscape.
