April 8 (Reuters) – Asian stocks are set for a volatile trading session on Friday after tech stocks rallied the S&P 500 to a new record, as investors weighed in on the unexpected surge in Americans filing new jobless claims … The US Jobless Claims Report posted a second straight weekly gain earlier Thursday, dispelling a series of strong economic data on employment and job vacancies that bolstered investor confidence in a quick economic recovery. The softer data helped push 10-year US Treasury yields to their lowest level since March 26 and spur demand for fast-growing technology stocks, which became the most profitable in the S&P 500. The high-tech Nasdaq also closed at a seven-week high on Thursday. “Jobless claims are setting the tone for the market that things may not be as good as people think and we are still far from a recovery,” said Tim Grisky, chief investment strategist at Inverness Counsel in New York.
Australian S & P / ASX 200 futures were up 0.03% in early trading, while Hong Kong’s Hang Seng Index futures were down 0.17%. Japanese Nikkei 225 futures were up 0.45%.
US Federal Reserve Chairman Jerome Powell made it clear on Thursday that the central bank is not going to cut support for the US economy, saying at an International Monetary Fund event that while the opening of the economy could lead to a short-term spike in prices, he expects it to be temporary. and it won’t be inflation.
Powell’s comments confirmed the compliant stance outlined in the Fed’s policy meeting minutes released Wednesday. Thanks to further declines in yields, traders have invested in stocks of megacities of technology companies such as Apple Inc, Microsoft Corp and Amazon.com Inc, which were the main driving forces behind the S&P 500. “Market movement was driven by rates,” he said. Thomas Hayes, Chairman of Great Hill Capital. “As long as the rates remain tight, there is a bet on long-term profit, which has been embodied in a rally in technology.”
On Wall Street, the Dow Jones Industrial Average rose 0.17% to hit 33,503.57, the S&P 500 added 0.42% to 4,097.17 and the Nasdaq Composite added 1.03% to 13,829.31.
US Treasury yields fell on Thursday under pressure from Powell’s soft comments and weaker-than-expected weekly initial jobless claims.
The benchmark 10-year bond last rose 9/32 to 1.6244%, up from 1.654% late Wednesday.
The US dollar fell to a two-week low against a basket of currencies, tracking Treasury yields following an unexpected surge in US jobless claims.
The dollar index fell 0.379%, the euro rose 0.03% to $ 1.1916.
The Japanese yen fell 0.05% against the US dollar to hit 109.31 per dollar, while the South Korean won was unchanged against the dollar at 1,116.18 per dollar.
Gold prices jumped to a one-month high as assurances from the Fed that they would maintain their adjustment policies put pressure on Treasury and dollar yields.
Spot gold added 1.1% to $ 1,756.36 an ounce. US gold futures climbed about 1% to $ 1,758.2.
Crude oil prices remained largely unchanged as a Wall Street rally and a weak dollar dampened fears of a sharp jump in US gasoline inventories.
US crude fell 0.28% to $ 59.60 a barrel, while Brent crude closed at $ 63.20 a barrel, up 0.06% on the day.
Chibuike Ogu reporting in New York; Edited by Christopher Cushing