12:32 PM EDT, 08/08/2024 (MT Newswires) -- US equity indexes rose with government bond yields after weekly jobless claims fell more than forecast, throwing cold water over speculation that the US economy might be in a sharp slowdown.

The Nasdaq Composite jumped 2.2% to 16,546.7, with the S&P 500 up 1.8% to 5,293.4 and the Dow Jones Industrial Average 1.4% higher at 39,310.6 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 11% to 25.01 as macroeconomic data failed to validate a narrative that the US economy is decelerating following last week's gloomy nonfarm payrolls for July.

In economic news, 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.

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 2.1 basis points to 3.99% and the two-year rate 3.5 basis points higher at 4.03%, 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 11% 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 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 7.6% intraday, the top gainer on the S&P 500.

West Texas Intermediate crude oil rose 1.1% to $76.04 a barrel.