Investing.com - U.S. stocks shot up on Thursday after data revealed the number of individuals filing for unemployment assistance fell more than expected last week, which fueled hopes that the January jobs report due out on Friday will point to an economy that is still recovering despite harsh winter weather.
At the close of U.S. trading, the Dow Jones Industrial Average rose 1.22%, the S&P 500 index gained 1.24%, while the Nasdaq Composite index rose 1.14%.
Stocks posted strong gains after data revealed that the number of individuals filing for unemployment assistance in the U.S. fell more than expected last week.
The Labor Department said initial jobless claims fell by 20,000 to 331,000 from the previous week’s revised total of 351,000. Analysts were expecting jobless claims to fall by 16,000.
The numbers rekindled perceptions that the U.S. economy continues to recover and that a recent factory report that disappointed markets was likely the product of a string of winter storms that disrupted commerce.
Investors were turning their attention to Friday’s U.S. nonfarm payrolls report for January, hopeful the report will show the economy continues to improve despite recent blizzards that pummeled the eastern half of the country.
A separate report showed that the U.S. trade deficit widened significantly in December, as exports dropped 2.2% and imports rose 1.6%, though still, the session was void of bad news, which put to rest fears the U.S. economy is hitting a soft patch.
Leading Dow Jones Industrial Average performers included Walt Disney, up 5.29% due to solid earnings, American Express, up 2.35%, and JPMorgan, up 2.31%.
The Dow Jones Industrial Average's worst performers included Pfizer, down 0.26%, Wal-Mart Stores, down 0.08%, and Verizon, down 0.05%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 1.59%, France's CAC 40 rose 1.71%, while Germany's DAX 30 rose 1.54%. Meanwhile, in the U.K. the FTSE 100 finished rose 1.55%.