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* Weekly applications for unemployment benefits increase more than expected.
* Roblox collapses after revenue forecast cut
* Next week’s inflation figures in focus
* The indices are up: Dow 0.47%, S&P 0.35%, Nasdaq 0.27%.
May 9 (Reuters) – Major U.S. stock indexes rose on Thursday as weekly jobless claims data provided fresh evidence of a weakening U.S. labor market and renewed hopes for a drop in unemployment rates. interest from the Federal Reserve this year.
After a mixed opening, stock indices rose in the morning, with large caps Amazon, Microsoft and Alphabet in the lead.
The number of Americans filing new claims for unemployment benefits rose more than expected to 231,000 last week, on a seasonally adjusted basis.
showed
. Economists polled by Reuters had forecast 215,000 applications.
“I would view the jobless claims as a favorable data point for the Fed, pointing in the direction of a slowing economy, which should help reduce inflation,” said Charlie Ripley, investment strategist senior for Allianz Investment Management.
Last week’s data showing
a slowdown in job growth
in April and
Job vacancies
in March, at a three-year low, have led investors to consider one or two rate cuts from the Fed this year. Before this, traders were only considering one rate cut.
Focus will be on next week’s producer and consumer prices, as well as comments from Fed policymakers for clues on the path of U.S. rates. San Francisco Fed President Mary Daly is expected to speak later today.
As of 11:21 a.m., the Dow Jones Industrial Average was up 183.76 points, or 0.47 percent, to 39,240.15, the S&P 500 was up 18.38 points, or 0.35 percent, to 5,206 .05 and the Nasdaq Composite gained 44.74 points, or 0.27%, to 16,347.49.
Ten of the 11 major sectors in the S&P index rose, led by a 1.7% rise in the real estate index. Data center operator Equinix jumped 11.3% after reporting its first quarter results.
In contrast, chip designer Arm Holdings fell nearly 2% as its full-year revenue forecast fell short of expectations. Its big rival Nvidia slipped 0.9%.
Roblox fell 22% after the video game platform cut its annual revenue forecast, a sign that people are cutting back on spending amid an uncertain economic outlook and high inflation levels.
Robinhood Markets edged up 0.4% after the online broker beat first-quarter profit estimates, thanks to strong cryptocurrency trading volumes and rate hikes that boosted its revenue net interest.
Rising stocks outnumbered falling stocks by a ratio of 2.6 to 1 on the NYSE and 1.71 to 1 on the Nasdaq.
The S&P 500 recorded 26 new 52-week highs and two new record lows, while the Nasdaq recorded 109 new highs and 57 new record lows. (Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru; Editing by Devika Syamnath, Shinjini Ganguli and Sweta Singh)
