Dow closes up to make it seven in a row, as jobs data boosts rate-cut hopes
Dow Jones Industrial Average closed higher on Thursday, the seventh straight daily advance for the benchmark, as all three major U.S. indexes gained after weekly jobless claims data offered fresh hope for interest-rate cuts.
U.S. Federal Reserve policy has been the main driver of investor sentiment in 2024. Renewed hopes the central bank will cut rates have pushed the Dow to its biggest rally since December. It closed at its highest since April 1.
Other benchmarks also benefited. After a flat day on Wednesday, the S&P 500 resumed its upward trajectory and closed above 5,200 points for the first time since April 9.
U.S. equity markets have clawed back losses incurred during April on fears the Fed may ultimately raise interest rates, and as tensions in the Middle East threatened to escalate.
«We've almost had a full recovery of that,» said Brad Bernstein, managing director at UBS Private Wealth Management.
For the quarter thus far, the Dow is 1.1% lower, the S&P 500 is 0.8% down and the Nasdaq Composite is off 0.2%.
While next week's producer and consumer prices readings are regarded as the next key signpost, other data have buoyed investor rate-cut hopes.
The number of Americans filing new claims for unemployment benefits increased more than expected to a seasonally adjusted 231,000 last week, data showed. Economists polled by Reuters had forecast 215,000 claims.
Last week's data showing slowing job growth in April and job openings falling to a three-year low in March had investors pricing in one or two rate
