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Investing.com-- U.S. stocks rose Thursday, after disappointing weekly jobless claims data raised the possibility of early rate cuts by the Federal Reserve. At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 295 points, or 0.8%, the S&P 500 rose 43 points, or 0.8%, and NASDAQ Composite rose 165 points, or 1%. Powell offers scant cues on rate cuts, nonfarm payrolls approach The number of Americans filing new claims for unemployment benefits increased more than expected last week, according to data released earlier Thursday, with claims rising 9,000 to a seasonally adjusted 221,000 for the week ended March 30. This was above the 214,000 expected. Claims had bounced around between 212,000 and 210,000 for much of March, and this rise suggested that labor market conditions were weakening. Investors have been concerned that stronger-than-expected economic data and sticky inflation will prevent the Federal Reserve from starting its expected rate-cutting cycle any time soon. Speaking on Wednesday, Fed Chair Jerome Powell said that while the central bank still intended to cut interest rates in 2024, he did not specify the timing or scale of the potential cuts. The weak initial claims data come just days before Friday's closely-watched nonfarm payrolls release for March. More Fed speakers also on tap There are more Fed officials due later Thursday. FOMC members Michelle Bowman and Thomas Barkin are set to speak after the market open, and investors will be keen to see if their comments continue the week's theme by their colleagues of warning that the central bank was in no hurry to begin cutting interest rates. Levis Strauss soars after strong guidance In corporate news, Levi Strauss (NYSE:LEVI) rose more than 14% after clothes retailer lifted its annual earnings guidance after clocking stronger-than-expected quarterly results. Nikola (NASDAQ:NKLA) stock rose over 7% after the EV manufacturer surpassed estimates for deliveries of its hydrogen big rigs in the first quarter, while Conagra Brands (NYSE:CAG) gained 7% on solid demand for its pantry staples and frozen food items. Crude retreats from five-month highs Oil prices slipped lower Thursday, but remained near five-month highs after major producers kept output cuts in place and with supply disruptions continuing. By 09:35 ET, the U.S. crude futures traded 0.1% lower at $85.35 a barrel, while the Brent contract dropped 0.1% to $89.26 per barrel. The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, decided to maintain its current band of production cuts during a Wednesday meeting, presenting a tight outlook for crude in the near-term. Additionally, a storm of geopolitical factors, including fears of a broader conflict in the oil-rich Middle East and Ukrainian attacks on key Russian refineries, heralded more global supply disruptions. Further gains in crude were held back by mixed readings on U.S. inventories, especially as official data showed an unexpected build in overall crude stockpiles. The build came as U.S. production remained near record highs - a trend that is expected to somewhat offset a tight outlook for oil markets. (Ambar Warrick contributed to this article.) |
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