• US stock indices rose sharply on Thursday as new jobless claims data boosted investor confidence.

• The Dow gained 683 points, while the S&P 500 and Nasdaq rose 2.3 percent and 32.8 percent, respectively.

• The S&P 500 had its best day since 2022, recouping losses from Monday’s big sell-off.

U.S. stocks rebounded on Thursday, erasing losses from a slump earlier in the week as new employment data boosted investor confidence in the labor market and the economy.

The S&P 500 rose 2.3%, its best day since November 2022. The Nasdaq Composite gained 2.8%, as did the Dow Jones Industrial Average.

The yield on 10-year Treasuries rose two basis points to 3.98 percent, declining slightly during the day after rising above 4 percent earlier in the day.

Thursday’s increase was boosted by a decline in weekly jobless claims, which eased fears of a looming recession after a surprise rise in the unemployment rate last week.

Jobless claims fell by 17,000 to 233,000 last week, the biggest drop in nearly a year. The encouraging data comes after last week’s disappointing nonfarm payrolls report for July sparked a historic sell-off and sparked recession fears.

With an increase of 3.5 percent, the information technology sector led the S&P 500, but communications services also recorded strong gains.

Pharmaceutical giant Eli Lilly rose 14% after reporting strong earnings last quarter, driven by strong demand for its GLP-1 weight-loss drugs. The company’s quarterly revenue of $11.30 billion beat analyst estimates of $9.98 billion, and the company raised its full-year revenue forecast.

“We’re just seeing incredible demand and we’re not even trying to advertise this drug particularly hard. We’re not advertising, we’ve told our sales people to basically just serve the customers and not advertise,” CEO David Ricks said in an interview with CNBC on Thursday.

Next week, investors will be looking forward to the latest inflation data, with the consumer price index for July due to be released on August 14. The data will provide the next big input for bets on Fed policy for the rest of the year.

Here you can see the US indices at the close of trading on Thursday at 4:00 p.m.:

Here’s what else is happening today:

The story continues

For commodities, bonds and cryptocurrencies:

• West Texas Intermediate crude rose 1% to $76.04 a barrel. Brent crude, the international benchmark, rose 0.9% to $79.02 a barrel.

• Gold traded higher at $2,463.30

• The yield on 10-year US Treasury bonds rose two basis points to 3.98%.

• Bitcoin rose 8% to $59,549.

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