“Covid-related trends continue to show improvements nationally and internationally, as doses of the vaccine continue to accumulate across the country,” said Paul Hickey of Bespoke Investment.
Bond yields, which rose recently due to concerns that a spike in inflation would force the Federal Reserve to raise rates sooner or later, have fallen again. These fears were allayed in part by Wednesday’s inflation report, which was in line with economists’ expectations.
The U.S. Treasury’s 10-year yield rose 0.01% to 1.53% around midday on Thursday. Bond yields and prices move in opposition to each other.
“It is becoming clear that investors are not sure what to do with stocks at these levels,” wrote Fawad Razaqzada, market analyst at Think Markets, in a note to customers.
“Some are still eager to continue buying stocks, especially those sensitive to the economy, before stimulus checks arrive,” added Razaqzada, “while others are happy to post a profit after a notable recovery in the past year or so.”
Thursday’s economic data also helped reinforce optimism: the first weekly claims for unemployment insurance were lower than economists had predicted and also dropped from the previous week. It could be a sign that the recovery of jobs in the United States is finally gaining momentum.
Still, with 712,000 seasonally adjusted initial claims filed last week, the number of workers in need of benefits is still greater than during the peak of the Great Recession.