The recent rebound came after better-than-expected jobless claims helped soothe rising recession concerns.
Stocks dropped dramatically Monday amid mounting concerns about the overall health of the U.S. economy more than a year after the Federal Reserve hiked interest rates to their highest level in 23 years.
On Thursday, however, the Dow Jones Industrial Average closed with a gain of 683 points, or 1.8 percent, while the Nasdaq composite was up 2.9 percent. The S&P 500 gained 2.3 percent, its best day since November 2022, according to CNBC.
The Fed is widely expected to start cutting rates next month as inflation dropped closer to its 2-percent goal, clocking in at 3 percent year over year in June and dropping 0.1 percent, its first monthly decline since the pandemic.
But unemployment ticked up to 4.3 percent last month, according to the latest jobs report, and a string of worrying earnings reports by major companies during the second quarter fueled concerns.
While the latest jobless claims seem to have soothed a shaken Wall Street, there is concern that the so-called soft landing may be harder than expected.
The Hill’s Taylor Giorno has more here.
