Tech shares help markets snap streak

Stocks had hit wall recently amid fears over interest rates

NEW YORK — Stocks climbed Thursday after a see-saw day on Wall Street to break out of their longest losing streak since December.

The S&P 500 rose 0.5 percent for its first gain in five days. The Dow Jones Industrial Average gained 108 points, or 0.3 percent, while the Nasdaq composite added 0.7 percent.

Tech stocks helped lead the way after Nvidia reported better results for the latest quarter than expected. Its shares jumped 14 percent after it also gave a forecast for upcoming revenue that topped some analysts’ expectations. It cited recovering strength in video gaming and demand for artificial intelligence products.

It’s a turnaround for tech and high-growth stocks, which have struggled because of worries about rising interest rates. They’re seen as some of the most vulnerable as the Federal Reserve jacks rates higher in hopes of stamping out inflation.

After leaping in January, stocks broadly have slammed into a wall this month on worries that inflation isn’t cooling as quickly or as smoothly as hoped. A lengthening list of reports have shown the economy is in stronger shape than expected.

While that has raised hopes about avoiding a recession in the near term, it also has forced Wall Street to raise its forecasts for how high the Fed will take interest rates and then how long it will keep them there.

The latest economic data released on Thursday suggested an economy with enough strength to encourage the Fed to press on with its “higher for longer” campaign on rates. The fear is that a strong economy could feed into upward pressure on inflation.

Fewer workers applied for unemployment benefits last week than expected, another sign that the job market remains resilient.

A separate report said the U.S. economy’s growth was likely a touch weaker in the last three months of 2022 than earlier estimated. But it still grew at a 2.7 percent annual rate.

Wall Street’s heightened expectations for rates and the Fed have been most evident in the bond market, where Treasury yields have shot higher this month. They eased a bit on Thursday.

The yield on the 10-year Treasury dipped to 3.88 percent from 3.93 percent late Wednesday.

The S&P 500 rose 21.27 points to 4,012.32. The Dow added 108.82 to 33,153,91, and the Nasdaq climbed 83.33 to 11,590.40.