Wall Street rallies to its best day since 2022 on encouraging unemployment data; S&P 500 jumps 2.3%

NEW YORK (AP) — U.S. stocks rallied Thursday in Wall Street’s latest sharp swerve after a better-than-expected report on unemployment eased worries about the slowing economy.

The S&P 500 jumped 2.3% for its best day since 2022 and shaved off all but 0.5% of its loss from what was a brutal start to the week. The Dow Jones Industrial Average rose 683 points, or 1.8%, and the Nasdaq composite climbed 2.9% as Nvidia and other Big Tech stocks helped lead the way.

Treasury yields also climbed in the bond market in a signal investors are feeling less worried about the economy after a report showed fewer U.S. workers applied for unemployment benefits last week. The number was better than economists expected.

It was exactly a week ago that worse-than-expected data on unemployment claims helped enflame worries that the Federal Reserve has kept interest rates at too high of an economy-slowing level for too long in order to beat inflation. That helped send markets reeling, along with a rate hike by the Bank of Japan that sent shockwaves worldwide by scrambling a favorite trade among some hedge funds.

At the worst of it, at least so far, the S&P 500 was down nearly 10% from its all-time high set last month. Such drops are regular occurrences on Wall Street, and “corrections” of 10% happen roughly every year or two. After Thursday's jump, the index is back within about 6% of its record.

What made this decline particularly scary was how quickly it happened. A measure of how much investors are paying to protect themselves from future drops for the S&P 500 briefly surged toward its highest level since the COVID crash of 2020.

Still, the market’s swings look more like a “positioning-driven crash” caused by too many investors piling into similar trades and then exiting them together, rather than the start of a long-term downward market caused by a recession, according to strategists at BNP Paribas.

They say it looks more similar to the “flash crash” of 2010 than the 2008 global financial crisis or the 2020 recession caused by the pandemic.

Of course, markets have been quick to turn over the past week regardless of any long-term predictions.

“Today’s jobless claims data may ease some of the concerns raised by last week’s soft jobs report,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. “But with inflation data due out next week and the stock market still working through its biggest pullback of the year, it’s unclear how much this will move the sentiment needle.”

In the meantime, big U.S. companies continue to turn in profit reports for the spring that are mostly better than analysts expected.

Eli Lilly jumped 9.5% to help lead the market after it delivered stronger profit and revenue than Wall Street had forecast. Sales of its Mounjaro diabetes treatment and its Zepbound weight-loss counterpart are booming, and the company raised its financial forecast for the year.

Big Tech stocks also rose to claw back some of their sharp losses from the last month.

After a handful of them almost singlehandedly drove the S&P 500 to dozens of all-time highs this year, the group known as the “Magnificent Seven” lost momentum last month amid criticism their prices soared too high in investors’ frenzy around artificial-intelligence technology.

How this handful of stocks performs carries extra impact on the S&P 500 and other indexes because they’re by far the market’s most valuable companies. Nvidia, which has become the poster child for the AI trade, rose 6.1% to trim its loss for the week so far to 2.1%, and it was the day’s strongest single force pushing upward on the S&P 500.

Gains of 1.7% for Apple and 4.2% for Meta Platforms were also big propellants, along with Eli Lilly.

They helped offset a drop of 11.3% for McKesson, which topped analysts’ expectations for profit in the latest quarter but fell short on revenue. It said growth slowed in its medical-surgical business.

Bumble, the Texas-based dating app, lost more than a quarter of its value, 29.2%, after its forecast for revenue in the third quarter came in well below Wall Street’s.

All told, the S&P 500 rallied 119.81 points to 5,319.31. The Dow gained 683.04 to 39,446.49, and the Nasdaq composite rose 464.22 to 16,660.02.

In the bond market, the yield on the 10-year Treasury rose to 3.99% from 3.95% late Wednesday.

In stock markets abroad, indexes were mixed across Asia and Europe. In Japan, which has been home to some of the wildest moves in global markets, the Nikkei 225 ticked down by 0.7%. That looked like a ripple following its tidal swings of down 12.4% and up 10.2% to start the week.

AP Business Writers Yuri Kageyama and Matt Ott contributed.

The monitor of specialist Anthony Matesic is seen through his glasses as he works on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

Specialist John O'Hara works at his post on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

A trader works on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

A trader works on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

Trader Robert Moran works in his booth on the floor of the New York Stock Exchange, Wednesday, Aug. 7, 2024. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, and the KOSDAQ (Korean Securities Dealers Automated Quotations) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Aug. 8, 2024. (AP Photo/Ahn Young-joon)

Currency traders watch a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Aug. 8, 2024. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Aug. 8, 2024. (AP Photo/Ahn Young-joon)

DILI, East Timor (AP) — Tens of thousands of East Timorese streamed Tuesday toward a seaside park for Pope Francis’ big Mass, held on the same field where St. John Paul II celebrated an historic liturgy during the nation’s fight for independence from Indonesia.

The Tacitolu park is said to have been a site where Indonesian troops disposed of bodies killed during their rule. Now it is known as the “Park of Peace” and features a larger-than-life-sized statue of John Paul to commemorate his 1989 visit, when the Polish pope shamed Indonesia for its human rights abuses and encouraged the overwhelmingly Catholic Timorese faithful.

John Paul’s visit helped draw attention to the plight of the Timorese people and shine a spotlight on the oppressiveness of Indonesia’s rule, during which as many as 200,000 people were killed over a quarter-century.

Francis celebrates a Mass at the same site Tuesday, following in John Paul's footsteps to cheer the Southeast Asian nation on two decades after it finally became an independent state in 2002. East Timor, known also as Timor-Leste, remains one of the poorest countries, with some 42% of its 1.3 million people living below the poverty line, according to the U.N. Development Program.

Unemployment is high, job opportunities in the formal sector are generally limited and most people are subsistence farmers with no steady income.

But the Timroese are deeply faithful – the territory has been overwhelmingly Catholic ever since Portuguese explorers first arrived in the early 1500s and some 97% of the population today is Catholic. They have turned out in droves to welcome the first pope to visit them as an independent nation, thronging the motorcade route as Francis arrived on Monday and pouring into the Tacitolu site for his Tuesday afternoon Mass.

“Yes this is a very grateful experience for us Timorese," said Ildefonso da Cruz Barreto, who was in the crowd greeting Francis outside the presidential palace. "During our fight for independence, the Catholic Church was a big part of the process.”

Government authorities said some 300,000 people had registered through their dioceses to attend the Mass, but President Jose Ramos-Horta said he expected 700,000 and the Vatican predicted as many as 750,000.

They lined up before dawn by the tens of thousands to enter the Tacitolu park, on the coast about 8 kilometers (nearly 5 miles) from downtown Dili. With hours to go until the service, the roads leading to it were jammed by cars, trucks and buses packed with people; others walked down the middle of the street, ignoring the sidewalks.

“For us, the pope is a reflection of the Lord Jesus, as a shepherd who wants to see his sheep, so we come to him with all our hearts as our worship,” said Alfonso de Jesus, who came from Baucau, the country’s second-largest city after Dili, about 128 kilometers east of the capital.

De Jesus, 56, was among the estimated 100,000 people who attended John Paul’s 1989 Mass, which made headlines around the world because of a riot that broke out just as it was ending. John Paul looked on as baton-wielding Indonesian plain-clothed police clashed with some 20 young men who shouted “Viva a independência” and “Viva el Papa!”

According to Associated Press reporting at the time, the men unfurled a banner in front of the altar and hurled chairs at the policemen. One banner read “Fretilin Welcomes You,” a reference to the independence movement that fought Indonesian rule since East Timor was annexed in 1976 after Portugal dismantled its centuries-old colonial empire.

Four women were reported hospitalized with injuries suffered after being crushed in the surging crowd. The pope wasn't harmed.

Amnesty International later expressed concern that some 40 people had been detained and tortured, though Indonesian authorities at the time denied any arrests or torture.

“The Mass was run very neat and orderly with very tight security,” De Jesus recalled more than three decades later. “But it was crushed by a brief riot at the end of the event.”

Many of the reports at the time quoted Dili Bishop Carlos Ximenes Belo in trying to draw attention to the plight of the Timorese people. Belo would go onto win the Nobel Peace Prize with Ramos-Horta for their efforts to peacefully resolve the Timorese conflict.

But Belo has since been discredited, at least outside of East Timor, after the Vatican revealed in 2022 that he had been sanctioned for sexually abusing young boys. Now living in Portugal and blocked by the Vatican from having contact with East Timor, Belo's historic role has been seemingly erased from any official mention during Francis' visit.

Francis has cheered East Timor for the progress it has achieved since independence and is seeking to encourage the country to strengthen its public institutions and look out for the poorest and most vulnerable.

Francis opened his day Tuesday visiting a home for disabled children run by a congregation of religious sisters. Young girls, including one without arms, presented Francis with a traditional woven shawl known as a tais as he arrived at the Irmas Alma school.

As he stroked the hand of a young boy named Silvano in a stroller, Francis said taking care of children with such health needs “teaches us to care.”

“As he allows himself to be cared for, we must learn to be cared for by God, who loves us,” Francis said.

Francis then met with clergy and religious sisters at the Cathedral of the Immaculate Conception, where he praised the women of the church and said their dignity must always be respected.

“Women are the most important thing in the church, because they take care of the most needy,” he said. “They heal them. They accompany them.”

He also heard the story of Florentino de Jesus Martins, an 89-year-old layman who has worked as a catechist, teaching the faith for the archdiocese of Dili, but had to retire because of his Parkinson's disease.

Greeting him, Francis marveled at his dedication, saying he didn't let his ailment paralyze his zeal for spreading the faith. “It seems he's competing with St. Paul the Apostle,” he said.

AP researcher Randy Herschaft contributed from New York.

Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.

People wait for Pope Francis visiting to children with disabilities of the Irmas Alma School in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis greets the people after the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

People wait for Pope Francis near the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Firdia Lisnawati)

People wait for Pope Francis visiting to children with disabilities of the Irmas Alma School in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

People wait for Pope Francis to arrive at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Firdia Lisnawati)

People wait for Pope Francis to arrive at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Firdia Lisnawati)

Pope Francis greets the people after the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis greets the people after the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis holds his cross pendant during a visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis greets the people after the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

People wait for Pope Francis near the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Firdia Lisnawati)

People greet Pope Francis as he travels in a car on way to another venue in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Firdia Lisnawati)

Pope Francis greets people in the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis leads the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis leads the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis arrives to lead the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis leads the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis leads the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis leads the holy mass at the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)

Pope Francis arrives at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. "Let us also not forget that these children and adolescents have their dignity violated," Francis said. "In response, we are all called to do everything possible to prevent every kind of abuse and guarantee a healthy and peaceful childhood for all young people." (AP Photo/Gregorio Borgia)

Pope Francis arrives at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. "Let us also not forget that these children and adolescents have their dignity violated," Francis said. "In response, we are all called to do everything possible to prevent every kind of abuse and guarantee a healthy and peaceful childhood for all young people." (AP Photo/Gregorio Borgia)

Pope Francis arrives at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. "Let us also not forget that these children and adolescents have their dignity violated," Francis said. "In response, we are all called to do everything possible to prevent every kind of abuse and guarantee a healthy and peaceful childhood for all young people." (AP Photo/Gregorio Borgia)

A child attends Pope Francis's visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis arrives at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. "Let us also not forget that these children and adolescents have their dignity violated," Francis said. "In response, we are all called to do everything possible to prevent every kind of abuse and guarantee a healthy and peaceful childhood for all young people." (AP Photo/Gregorio Borgia)

Pope Francis speaks during a visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. At left is Archbishop of Dili Cardinal Virgilio do Carmo da Silva. (AP Photo/Gregorio Borgia)

Pope Francis consoles a person during a visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis consoles a person during a visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis speaks during a visit at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis arrives at the 'Irmas ALMA' (Sisters of the Association of Lay Missionaries) School for Children with Disabilities in Dili, East Timor, Tuesday, Sept. 10, 2024. Pope Francis has indirectly acknowledged the abuse scandal in East Timor involving its Nobel Peace Prize-winning independence hero Bishop Carlos Filipe Ximenes Belo. (AP Photo/Gregorio Borgia)

Pope Francis greets people in the Cathedral of the Immaculate Conception in Dili, East Timor, Tuesday, Sept. 10, 2024. (AP Photo/Dita Alangkara)