1. U.S. stocks, including S&P 500, traded higher on Thursday. 2. U.S. economy shrank at 0.5% annualized rate in Q1. 3. Durable goods orders rose significantly by 16.4% month-over-month. 4. Initial jobless claims decreased by 10,000 to 236,000. 5. Materials sector led gains, while real estate stocks fell.
The rise in durable goods orders and decreasing jobless claims indicate stronger economic activity, which typically supports S&P 500 growth. However, the shrinking economy is a concern. Historical data shows that strong consumer spending can mitigate declines when economic contractions occur.
The article contains crucial economic data affecting market trends, impacting investor sentiment significantly. The indicators discussed can influence trading decisions of major S&P 500 constituents.
The positive indicators, such as durable goods and jobless claims, tend to have immediate influences on market sentiment, leading to short-term gains. Market reactions to economic data typically manifest quickly.