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Weekly jobless claims rise in latest week
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JD.Com jumps on plan to spin off property unit
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Biden plans stronger measures for banks
(Updates to close)
By Caroline Valetkevitch
NEW YORK, March 30 (Reuters) - U.S. stocks ended higher
on Thursday as technology-related shares extended their recent
strong run, while regional bank shares fell after the Biden
administration proposed stronger measures to help reduce risk.
The S&P 500 technology index gave the S&P 500 its
biggest boost, while the PHLX semiconductor index also
rose, extending Wednesday's strong gains.
U.S. regional bank shares fell after the Biden
administration proposed a limited list of new measures to
strengthen mid-sized banks that it said could be pushed through
without having to go to Congress.
The KBW regional bank index was lower, and the S&P
500 financial index was the only S&P 500 sector in
negative territory on the day.
"Tech is probably the furthest sector removed from
financials," so there has been a rotation away from financials,
said Jack Ablin, chief investment officer at Cresset Capital in
Chicago.
The banking turmoil, which started earlier this month with
the collapse of two regional U.S. lenders, had sparked concerns
about a broader financial crisis.
Investors also awaited the February reading of personal
consumption expenditures (PCE) price index due Friday, which
could offer more clues about the Federal Reserve's interest rate
path. January figures showed a sharp acceleration in consumer
spending.
According to preliminary data, the S&P 500 gained 22.59 points, or 0.56%, to end at 4,050.40 points,
while the Nasdaq Composite gained 87.39 points, or
0.73%, to 12,013.62. The Dow Jones Industrial Average rose 142.29 points, or 0.43%, to 32,859.89.
Data earlier on Thursday showed jobless claims last week
rose more than expected from the week before, indicating a
cooling labor market. Separately, fourth-quarter GDP growth was
slightly lower at 2.6% compared with earlier estimates of 2.7%,
both supporting the case for a softer Fed policy.
Among other stocks, Faraday Future Intelligent Electric Inc rose after the company said it had started production of its first luxury electric car after a months-long delay. U.S.-listed shares of Alibaba Group Holding advanced on a report that its logistics arm had started preparations with banks for its Hong Kong initial public offering, while those of JD.Com jumped on plans to spin off its real estate infrastructure arm. (Reporting by Caroline Valetkevitch; additional reporting by Amruta Khandekar and Ankika Biswas; Additional reporting by Sruthi Shankar; Editing by Anil D'Silva, Vinay Dwivedi and Richard Chang)
