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Wall Street climbs as hopes of interest rate cuts emerge due to a higher than expected U.S. jobless claims report.
European shares hit new highs hours after the US jobless claims report, which in turn boosted Wall Street gains this Thursday. Last week’s job growth report showed a slowdown in hiring numbers in April, and this week’s jobless claims showed a significant increase in the number of Americans filing new claims for unemployment benefits. The data were higher than market expectations of 215.000 Americans, filling new claims for unequal benefits. Still, the number was up to 231.000.
In light of this report, marketers’ hope for interest rate cuts has renewed, along with their increased hopes for softening the labor market. The analysis concludes this report and says that the increase in jobless claims will help soften the labor market, and in turn, it will allow the Federal Reserve officials to restart the interest rate cuts and tame inflation. Charlie Ripley, the senior investment strategist for Allianz, says, “I would consider jobless claims to be Fed-friendly data, moving in the right direction towards slowing the economy, which should help bring down inflation.”
In other economic news, European shares are up to a new high this Thursday, boosted by the increasing hopes of higher-than-average U.S. jobless claims. Matt Miskin, co-chief investment strategist at John Hancock Investment Management in Boston. There is a lot to say about this amazing trading session.
He shared his note and said, “We’ll have to see if that’s the beginning of a trend. That is one of the biggest jumps we’ve seen in quite a while.” He added, “It’s been a relatively quiet week, but initial jobless claims came in weaker. We’re still clearly in that ‘bad news is good news’ macro regime.”
Meanwhile, the pan-European STOXX 600 hit a new high by climbing by 0.19%, and the UK’s FTSE 100 jumped this morning by 0.33% following the Bank of England’s decision to maintain interest rates.
Turning to Wall Street and the daily stock news, Quinix surged 10.3% after announcing its first-quarter results. Arm Holdings dipped 1.3% due to a below-expectation full-year revenue forecast, while Nvidia slipped 1.7%.
Roblox slumped 20.5% after cutting its annual bookings forecast, signaling reduced spending amid economic uncertainty and inflation.
Robinhood Markets fell 3.8% despite beating estimates for first-quarter profit.
Spirit Airlines jumped 12.1%, rebounding from hitting a record low earlier in the week. As for the tech stocks, most Baluabel tech stocks traded high this Thursday; these include Apple, Meta, and Amazon.
As of 14:45 a.m. ET, the S&P 500 benchmark was up by 0,47% to 5,212.80 basis points; therefore, out of 11 major S&P sectors, only real estate saw gains, with real estate leading with a 1.9% rise. The tech-heavy Nasdaq climaxed by 0.25% to 16,334.8 basis points. The Dow Jones Industrial also went up by 0.81% to 39.377.90 basis points.
As for the U.S. dollar, the index declined by approximately 32%, at a time when global reports suggest that the overall reliance on the U.S. dollar is declining.
