NEW YORK, Feb. 1 (Xinhua) -- U.S. stocks rebounded Thursday on improvement in manufacturing indicators for January, while investors awaited earnings reports from three mega-cap technology companies after the closing bell.
The Dow Jones Industrial Average rose 369.54 points, or 0.97 percent, to 38,519.84. The S&P 500 added 60.54 points, or 1.25 percent, to 4,906.19. The Nasdaq Composite Index increased 197.63 points, or 1.30 percent, to 15,361.64.
Ten of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and consumer staples leading the gainers by adding 1.98 percent and 1.97 percent, respectively. Meanwhile, energy bucked the trend by dropping 0.06 percent.
Despite 15 months of shrinking activity, the manufacturing industry shows signs of resilience. The Institute for Supply Management (ISM) on Thursday reported a slower decline and an uptick in new orders, suggesting a mixed bag of good and bad news.
The ISM manufacturing purchasing managers' index (PMI) rose to 49.1 in January 2024, higher than 47.1 in the previous month and consensus forecast of 47.4.
Meanwhile, the seasonally adjusted S&P Global U.S. manufacturing PMI edged up to 50.7 in January, up from 47.9 in December 2023 and slightly higher than the earlier released flash estimate of 50.3. The latest reading marked the strongest improvement in operating conditions since September 2022.
While initial jobless claims last week rose slightly above expectations, the number remains historically low. This could indicate a slowdown in the labor market, potentially easing inflationary pressures and prompting the Federal Reserve to pause its interest rate hikes.
On a brighter note, another report showed a significant increase in U.S. worker productivity in late 2023. This could allow for wage growth without fueling inflation, further supporting a more dovish stance from the Fed.
Big Tech stocks are facing very high expectations after they soared much more than the rest of the market last year, carrying the S&P 500 to records recently. Amazon reported fourth-quarter earnings and revenue on Thursday that sailed past analysts' estimates. Amazon stock climbed more than 3 percent in extended trading.
Meta beat on earnings and revenue in its fourth-quarter report on Thursday and announced its first-ever dividend payment. The stock jumped more than 8 percent in extended trading. Apple also reported earnings after the bell.
Shares of Peloton plunged on Thursday after the fitness company warned investors it is still months away from growing sales or turning a profit.
