Dow rises 433 points as markets bounce back on vaccine optimism, low unemployment claims

Markets responded positively to the Labor Department’s report of new unemployment claims, which fell below 473,000 last week.File Photo by John Angelillo/UPI

May 14, 2021 (UPI) — U.S. markets rebounded Thursday driven by loosened guidelines for people vaccinated against COVID-19 and positive unemployment data.

The Dow Jones Industrial Average gained 433.79 points, or 1.29%, while the S&P 500 climbed 1.22% with all 11 sectors trading positively and the Nasdaq Composite closed the day up 0.72%.

Shares of American Airlines, Delta and United each rose more than 2% to help boost gains Thursday after the Centers for Disease Control and Prevention issued guidance stating that people in the United States who are fully vaccinated against COVID-19 do not have to wear masks or maintain 6 feet of distance in most indoor and outdoor settings.

Markets also responded positively to the Labor Department’s report of new unemployment claims, which fell below 473,000 last week, a new pandemic low.

Thursday’s gains came after losses driven by fear of inflation on Wednesday which saw the Dow drop 680 points and the tech-heavy Nasdaq fall 2.6% amid a steep sell-off of tech stocks.

Tech stocks rebounded some Thursday with Apple stock rising 1.79% and Microsoft gaining 1.69%, but inflation fears still loomed.

“It’s not a matter of whether inflation is going to be firmong over the next couple of months … it will,” Garret Melson, a portfolio strategist at Natixis Investment Manager Solutions told Yahoo Finance. “The bigger story is whether we’re seeing a persistent and structural shift higher in prices.”

Several major stocks shifted after hours trading as they reported earnings after the bell with Disney falling 3.41% after reporting revenue of $15.61 billion, short of analysts predictions of $15.87 billion.

DoorDash, on the contrary, exceeded analysts expectations reporting $1.08 billion as shares of the food delivery company rose 6.33%.

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