01:58 PM EDT, 08/08/2024 (MT Newswires) -- US equity indexes jumped, led by technology, and government bond yields advanced after weekly jobless claims slumped more than forecast, throwing cold water over speculation that the US economy is in a sharp slowdown.

The Nasdaq Composite jumped 2.8% to 16,657.7, with the S&P 500 up 2.3% to 5,317.5 and the Dow Jones Industrial Average 1.7% higher at 39,423.3 after midday on Thursday. All sectors rose in a broad-based rally led by technology, communication services, and industrials intraday.

The CBOE's Volatility Index (VIX), known as the fear gauge, slumped 9.3% to 25.26 as macroeconomic data failed to validate a narrative that the US economy is decelerating following last week's gloomy nonfarm payrolls for July.

US initial jobless claims fell by 17,000 to 233,000 in the week ended Aug. 3 from an upwardly revised 250,000 level in the previous week, compared with expectations for a smaller decrease to 240,000 in a survey of analysts compiled by Bloomberg.

"An unexpected drop in jobless claims offers a welcome positive indication of labor market conditions, softening concerns of more precipitous weakness in the aftermath of a somewhat disappointing jobs report," Stifel economists, including Lindsey Piegza, said in a note.

Wholesale inventories were unrevised in June from a 0.2% increase in the advance reading, as expected in a survey compiled by Bloomberg and following a 0.5% increase in May.

Most Treasury yields rose, with the 10-year up 4.9 basis points to 4.01% and the two-year rate 4.5 basis points higher at 4.04%, reflecting the risk-on mood.

In company news, Morgan Stanley said in a note Thursday that Monster Beverage's ( MNST ) revenue growth slowed in Q2 and July, mirroring a downturn in the energy drink sector. "Softness is particularly acute in the energy category with its skew to the more macro sensitive gas/convenience channel, with weakening consumer traffic, and to [Monster Beverage ( MNST )] given its low/middle-income consumer skew." Shares sank more than 12% intraday, among the worst in the S&P 500 and the Nasdaq.

McKesson (MCK) reported overnight fiscal Q1 sales grew less than forecast. Shares plunged almost 12% intraday, the steepest decliner on the S&P 500.

Eli Lilly ( LLY ) lifted its full-year outlook on Thursday after delivering stronger-than-anticipated second-quarter results, boosted by demand for the company's Mounjaro diabetes treatment and weight-loss drug Zepbound. Shares jumped 8.4% intraday, the top gainer on the S&P 500.

West Texas Intermediate crude oil rose 1.1% to $76.09 a barrel.

Gold jumped 1.2% to $2,461.61 an ounce, and silver advanced 2.5% to $27.62.