New York [US], June 30:U.S. stocks ended mixed on Thursday as fresh economic data indicated that U.S. growth remains resilient and the country's largest lenders passed the Federal Reserve's annual stress test.
The Dow Jones Industrial Average rose by 269.76 points, or 0.80 percent, to 34,122.42. The S&P 500 added 19.58 points, or 0.45 percent, to 4,396.44. The Nasdaq Composite Index dipped 0.42 points to 13,591.33.
Eight of the 11 primary S&P 500 sectors ended in green, with financials and materials leading the gainers by rising 1.67 percent and 1.27 percent, respectively. Meanwhile, communication services and consumer staples led the laggards by losing 0.63 percent and 0.15 percent, respectively.
While higher Treasury yields dragged on the tech-heavy Nasdaq Composite, cyclical stocks outperformed and led the Dow to close 200 points higher on Thursday.
Big bank names gained on Thursday after passing the Fed's annual stress test, in which 23 banks proved they have sufficient capital to absorb more than 540 billion U.S. dollars in losses. The regulator said Wednesday that these 23 biggest lenders weathered a hypothetical severe global recession in the stress test.
Goldman Sachs and JPMorgan Chase each rose more than 3 percent, while Wells Fargo advanced around 4.5 percent. Some other financial stocks which were dragged down during this year's banking crisis also gained, including Western Alliance and Zions Bancorporation.
Investors are also digesting a batch of positive economic data that suggest a resilient economy and a robust labor market. Some analysts believe these releases could ease recession fears, but raise expectations for further rate hikes.
The growth rate of U.S. gross domestic product (GDP) was revised up notably to 2 percent in the first quarter, up from the previous estimate of 1.3 percent, according to data issued by the U.S. Bureau of Economic Analysis on Thursday. This was the third and final estimate for the period, reflecting upward revisions to exports and consumer spending.
U.S. initial jobless claims decreased by 26,000 to 239,000 in the week ending June 24, the lowest level since May, indicating the labor market remains fairly robust, according to the U.S. Department of Labor's report on Thursday.
The first quarter GDP number was the most surprising given it significantly surpassed expectations but initial jobless claims were also much lower than forecasts and the recent trend. Resilience is not something we usually complain about but on this occasion, it could be to the economy's detriment, said Craig Erlam, senior market analyst at OANDA, a supplier of online multi-asset trading services.
"It's been a mixed trading session on Thursday as we get more evidence of economic resilience from the United States which has left investors wondering whether they've once again underestimated how much monetary tightening is going to be necessary," said Erlam.
Source: Xinhua