US stocks surge by most since 2022 on a small bit of good news
The S&P 500 had its best day since November 2022, up 2.3%, while the Russell 2000 gained a tick more and the Nasdaq 100 surged 3.1%.
A small upside surprise on US initial jobless claims helped spur a very broad rally on Wall Street. The advance-decline line for the benchmark US stock index was a whopping 411, tying its highest level of 2024.
While cyclical parts of the equity market did well – consistent with a perceived reduction in recession risk – tech was far and away atop the S&P 500 sector ETF leaderboard, continuing to hint at a strong flow and momentum-based accelerant behind the market’s moves.
Parker-Hannifin was the second-best S&P 500 constituent, up 10.8% as the industrial manufacturer’s profit forecast for the year ahead was well above Wall Street’s estimates, buoyed by a solid order book.
Eli Lilly was right behind, advancing 9.5% after its quarterly results showed it was gaining ground on Novo Nordisk in weight loss drug sales much more than anticipated.
Warner Bros. Discovery, on the other hand, was near the bottom of the S&P 500’s leaderboard after reporting a colossal quarterly loss that included a writedown to the value of its cable networks. Shares fell 9% to close just shy of a record low.
