Stock Market Today: Stocks Bounce Back After Latest Jobs Data
Today's weekly jobless claims update gave investors hope that the labor market might finally be cooling.


With just two sessions left in 2022, bulls finally got the stock market surge they've been hoping for. The major market indexes staged a hearty rally Thursday, helped by a bad-news-is-good-news reading on the labor market in vapor-thin trading volume.
The proximate cause for Thursday's rally came courtesy of an uptick in weekly jobless claims. The Labor Department reported that initial jobless claims rose by a more-than-expected 9,000 to 225,000 in the week ended Dec. 24. The squeaky tight labor market is a sticking point in the Federal Reserve's efforts to slow the economy and bring down inflation. Any sign that hiring is cooling is considered a step in the right direction for the central bank to ease up on rate hikes.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Bargain hunters and fund managers looking to add a little window dressing to their year-end returns also helped give equities a lift on Thursday. December is historically one of the strongest months of the year for stocks, but heading into today's trading, the major market indexes were carrying month-to-date losses ranging from 5% to 11%. It was only fitting that some of the day's biggest gainers were stocks that suffered outsized losses this month, including Apple (AAPL, +2.8%), Tesla (TSLA, +8.1%) and Amazon.com (AMZN, +2.9%).
At the close, the Dow Jones Industrial Average was up 1.1% at 33,220, the S&P 500 Index was 1.8% higher at 3,849, and the Nasdaq Composite had gained 2.6% to 10,478.
The Small-Cap Stocks to Watch in 2023
"2022 was an exceptional year and not in a good way," says Brad McMillan, chief investment officer for Commonwealth Financial Network. And what made this year so difficult, he says, were issues that no one foresaw back in January: Sizzling inflation and rising interest rates. McMillan says that among the many lessons this year has taught investors, "perhaps [the] most important is that one year – no matter how good or bad – doesn't achieve or derail your goals."
For investors who've come to realize in 2022 that they prefer a lower-risk, diversified approach, these bear market ETFs or low-volatility ETFs might be a better choice for next year. And for those who've discovered they actually have a higher tolerance for risk? These top small-cap stocks are priced for outsized returns in 2023.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Ask the Editor: Four Reader Tax Questions
Ask the Editor In our new Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions related to filing of tax returns and paying taxes.
By Joy Taylor Published
-
These Eight States Have the Most Expensive Home Insurance in 2025
If you live in one of these eight states, you’re probably paying $1,000 or more above the national average for home insurance.
By Rachael Green Published
-
Stock Market Today: It's Going to Stay Choppy for Stocks
Auto-focus can show us a lot about uncertainty on the ground and in the stock market.
By David Dittman Published
-
Stock Market Today: Auto Tariffs Send Stocks Lower
The main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
By Karee Venema Published
-
Stock Market Today: Stocks Seesaw After Big Market Rally
The latest consumer confidence data showed sentiment remains low.
By Karee Venema Published
-
Stock Market Today: Markets Celebrate Trump's Tariff Détente
Consumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
By David Dittman Published
-
Stock Market Today: Stocks Swing Higher After Early Slump
Negative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
By Karee Venema Published
-
Stock Market Today: Stocks Struggle After Big Fed Gains
An unexpected rise in existing home sales couldn't save stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
By David Dittman Published
-
Stock Market Today: Stocks Skid Into Another Risk-Off Turn
The promise of the AI revolution can't overcome flickering hopes for a "Fed put."
By David Dittman Published