Tesla Inc. climbed more than 4% in premarket trading, with Apple Inc. Amazon.com Inc. Tech giants were also the biggest beneficiaries, including
Applications for unemployment benefits rose slightly last week, but US equity futures rose on Thursday after remaining near historic lows. Treasury yields fell and the dollar gauge declined.
The contract for Asian technology stocks rose 1% on the tech-heavy Nasdaq 100 amid the first signs China is easing a regulatory crackdown. Contracts on the S&P 500 were up about 0.7%. Tesla Inc. climbed more than 4% in premarket trading, with Apple Inc. Amazon.com Inc. Tech giants including were also the biggest beneficiaries.
US jobs data failed to catch any unwanted surprises, underscoring the labor market's resilience despite the Federal Reserve's aggressive monetary tightening. Labor Department data showed initial unemployment claims were expected to rise by 225,000 in the week ending Dec. 24. Continuing claims rose to 1.7 million in the week ending December 17, the most since the beginning of February.
The rally, especially in tech, is a small ray of light as the year draws to a close with investors refocusing on the risks arising from the spread of Covid-19. The US said on Wednesday it would require airline passengers arriving from China to show a negative Covid-19 test before entry. In Italy, health officials said they would test arrivals from China after nearly half of passengers on two flights to Milan from China were found to have the virus.
Hong Kong further eased its last major Covid rules, removing limits on gatherings and testing for travelers, boosting the global economy but raising concerns that it will stoke inflationary pressures and send US policymakers into a tizzy. Will motivate to maintain tight monetary setting.
"Investors are going into 2023 with a cautious mindset, bracing for more rate hikes, and expecting a worldwide recession," said Craig Erlam, a senior market analyst at OANDA Europe Ltd. prevention. It's a change from fighting every case to living with the virus, and it creates enormous uncertainty to start the year.
The Stoxx Europe 600 index pared losses in trading little changed, with losses in technology stocks offsetting retail and consumer-focused stocks.
Global equities have lost a fifth of their value in 2022, the biggest annual decline since 2008, and an index of global bonds is down 16% amid stagnant inflation and rising interest rates.
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