The NASDAQ and benchmark S&P 500 rallied to new highs on Thursday, as data released showed the U.S. economy had grown more than expected.
Data for the first quarter of the year highlighted that GDP had increased by 6.4% versus initial expectations of a 6.1% rise.
This was the highest level of growth in any first quarter in the United States since 1984 and comes on the back of a record $1.2 trillion COVID-19 stimulus package.
GDP data coincided with the Labor Department releasing its weekly jobless claims report, which showed claims for state unemployment benefits fell by 13,000 to 553,000 during last week.
Today’s data helped send both the NASDAQ and S&P 500 to record all-time highs at the open.
Facebook rallies as earnings beat expectations
FAANG companies continued to report better than expected results, as Facebook became the latest member of the group to hold its earnings call.
The company founded by Mark Zuckerberg reported that both earnings and revenue had outperformed initial expectations.
Its earnings per share for the quarter came in at $3.30 per share versus $2.37, whilst revenue rose to $26.17 billion against the $23.67 billion expected.
As of writing, shares in the tech giant were up by 6.06%, the only blemish on the company’s report was the fact the DAU’s (Daily Active Users) fell just below expectations, coming in at 1.88 billion vs. 1.89 billion.
Ethereum hits new high as Bitcoin stalls
The value of Ethereum rose to a new high on Thursday, breaking its correlation with Bitcoin, which slipped in today’s session.
Ethereum, which is the second largest cryptocurrency by market cap, rose as news that the European Investment Bank was launching a digital bond programme on the ETH network.
ETHUSD rallied to a new high of $2800.44 earlier today, whilst BTCUSD fell to an intraday low of $52,706; after trading at a high of $54,445.
Regarding the move, the EIB stated that, “In another testimony of EIB’s leading position in capital markets’ innovation, this transaction marks the EIB’s first step as a pioneer in the use of blockchain technology for the issuance of financial securities”.
Quote of the day – “Time is your friend; impulse is your enemy.”– John Bogle
Senior Market Analyst