# Wall Street pushes stocks, oil higher on promising data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-05
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: U.S. stocks rise as jobless claims drop and trade deficit
Meta Description: Get the latest on U.S. stocks and oil prices rebounding with positive economic data amid rising COVID-19 cases and Federal Reserve stimulus news.
URL: https://financedigest.com/wall-street-pushes-stocks-oil-higher-on-promising-datahtml

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By Lawrence Delevingne

BOSTON (Reuters) -U.S. stocks and oil prices rebounded on Thursday morning as unemployment claims declined and the trade deficit widened, [positive economic data in the face of rising COVID-19 cases](https://www.financedigest.com/italy-probes-meta-over-abuse-of-position-in-music-rights-case.html "Italy probes Meta over abuse of position in music rights case") and signals of declining Federal Reserve stimulus.

The number of Americans filing new claims for unemployment benefits declined further last week, while layoffs dropped to their lowest [level in just more than 21 years in July](https://www.financedigest.com/foreign-tourism-to-portugal-surpasses-pre-covid-levels-in-july.html "Foreign tourism to Portugal surpasses pre-COVID levels in July") as companies held on to their workers amid a labor shortage.

The U.S. trade [deficit also surged to a record](https://www.financedigest.com/energy-bill-support-pushes-uk-budget-deficit-to-february-record.html "Energy bill support pushes UK budget deficit to February record") high in June as efforts by business to rebuild inventories to meet robust consumer spending drew in more imports.

The Dow Jones [Industrial Average](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") rose 167.64 points, or 0.48%, to 34,960.31, the S&P 500 gained 16.11 points, or 0.37%, to 4,418.77 and the Nasdaq Composite added 61.63 points, or 0.42%, to 14,842.16.

Goldman Sachs market strategists on Thursday raised their year-end and 2022 price targets for the S&P 500 Index, citing “the combination of higher-than-expected S&P 500 earnings and lower-than-expected [interest rates.”](https://www.financedigest.com/interest-rate-and-recession-fears-knock-stocks-and-oil.html "Interest rate and recession fears knock stocks and oil")

Still, [investors want to know just how low rates](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors") will stay, and for how long.

U.S. Federal Reserve Vice Chair Richard Clarida, a major architect of the Fed’s new policy strategy, said on Wednesday he felt the conditions for raising interest rates could be met by the end of 2022, raising expectations that the [central bank](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") could scale back its bond-buying program soon.

A [key indicator](https://www.financedigest.com/alanine-market-key-players-swot-analysis-key-indicators-and-forecast-to-2029.html "Alanine Market Key Players, SWOT Analysis, Key Indicators and Forecast to 2029") is due on Friday with the U.S. non-farm payrolls report, seen as key to the U.S. central [bank’s policy](https://www.financedigest.com/what-to-make-of-the-headlines-brexit-and-bank-of-england-policy-eba-bank-stress-tests.html "What to make of the headlines? Brexit and Bank of England policy, EBA bank stress tests") stance.

The [dollar held gains](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data") against a basket of currencies on Thursday morning after Clarida’s hawkish remarks, trading around 92.282 after hitting an eight-day high of 92.352.

Traders left U.S. Treasury [yields largely in place on Thursday despite a healthy report on jobless claims as they waited for more detailed employment data](https://www.financedigest.com/stocks-yields-fall-data-suggests-u-s-economy-cooling.html "Stocks, yields fall; data suggests U.S. economy cooling") due on Friday.

Benchmark 10-year notes last fell 9/32 in [price to yield](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") 1.2135%, up from 1.184% late on Wednesday.

[Oil prices](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") increased toward $71 a barrel on Thursday on rising Middle East tensions, while fresh movement restrictions imposed by countries to counter a surge in COVID-19 cases threatened the demand recovery.

U.S. crude recently rose 0.28% to $68.34 per barrel and Brent was at $70.55, up 0.24% on the day.

Spot gold dropped 0.5% to $1,802.11 an ounce. U.S. gold futures fell 0.76% to $1,796.80 an ounce.

(Reporting by Lawrence Delevingne; Editing by Will Dunham)


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