US benchmark equity indexes closed higher Thursday as traders assessed a report showing that weekly jobless claims jumped to the highest level since August.
The Dow Jones Industrial Average rose 0.9% to 39,387.8, while the S&P 500 grew 0.5% to 5,214.1. The Nasdaq Composite added 0.3% to 16,346.3. Barring technology, all sectors notched gains, led by real estate and utilities.
In economic news, the seasonally adjusted number of initial jobless claims in the US increased by 22,000 to 231,000 in the week ended May 4, the Department of Labor said. This marked the highest level since the week ended Aug. 26, 2023. The consensus was for 212,000 in a survey of analysts compiled by Bloomberg.
"If the higher level of claims persists or if claims rise further, it would be a sign of a further loosening in labor market conditions," Oxford Economics said in a note. "However, one week of data doesn't change our call for the (Federal Reserve) to keep interest rates at current levels until September."
Official data released Friday showed the US economy added 175,000 jobs in April, below the 240,000 gain expected in a Bloomberg-compiled consensus.
The central bank's Federal Open Market Committee tightened monetary policy by 525 basis points from March 2022 through July 2023 to tame inflation. It has held its benchmark lending rate steady since then, with its latest pause coming last week.
The US two-year yield fell 3.2 basis points to 4.81% Thursday, while the 10-year rate declined 2.6 basis points to 4.46%.
In company news, Equinix (EQIX) shares jumped nearly 12%, the top performer in the S&P 500. The company late Wednesday logged first-quarter adjusted funds from operations that topped Wall Street's expectations.
Constellation Energy (CEG) was the best performer on the Nasdaq, up 3.8%. The company expects uprates at its nuclear plants to eventually "add up to 1,000 megawatts or perhaps more of clean, firm power to the grid," Chief Executive Joseph Dominguez said on an earnings conference call, according to a Capital IQ transcript.
Epam Systems (EPAM) saw the steepest decline on the S&P 500, down nearly 27%, after the company lowered its 2024 revenue outlook.
Airbnb's (ABNB) shares slipped 6.9%, the biggest drop on the Nasdaq and among the worst in the S&P 500. The vacation rental company Wednesday offered a muted outlook for the second quarter while its first-quarter results surpassed the Street's estimates on the back of strong travel demand and the timing of Easter.
West Texas Intermediate crude oil rose 0.8% to $79.61 per barrel Thursday.
Gold increased 1.2% to $2,351.10 per troy ounce, while silver surged 3.4% to $28.55 per ounce.