(Reuters) – The New York Stock Exchange opened slightly higher on Thursday as index futures rallied after the release of U.S. Labor Department data on weekly jobless claims, which boosted jobless hopes an upcoming reduction in key rates from the Federal Reserve (Fed).
In early trading, the Dow Jones index lost 41.90 points, or 0.11%, to 39,014.49 points and the broader Standard & Poor’s 500 rose 0.05% to 5,190.23 points.
The Nasdaq Composite takes 0.15%, or 23.74 points, to 16,326.49.
In the absence of catalysts this week, market momentum has eased as traders await more clarity on the timing and pace of interest rate cuts, lower-than-expected wage data for the week the latter having fueled hopes of reductions this year.
The larger than expected increase in weekly unemployment claims, which suggests a weakening of the job market, has also revived bets on an upcoming reduction in key rates.
“Every time the employment numbers are weaker and don’t meet our expectations, ironically it supports the markets because the data was in favor of cutting rates rather than increasing rates,” said Peter Andersen, founder of Andersen Capital Management.
Operators anticipate rate cuts of 47 basis points (bps) by the end of the year, according to LSEG data.
“We think the Fed’s next move will be a cut,” said Mohit Kumar, an economist at Jefferies.
“Next week’s US CPI could be one of the catalysts, but if the range holds, we could view the early June jobs report as the next potential catalyst,” he added.
In values, Tesla lost 0.09% after Bloomberg reported that the group is facing growing pressure in China and must regain market share there.
Warner Bros. Discovery lost 2.05% after announcing its intention to offer its Disney+, Hulu and Max streaming services as a bundle to its American customers, starting this summer, while reporting a turnover in- below expectations in the first quarter.
Arm Holdings fell 6.57% after reporting disappointing annual revenue forecasts, as the semiconductor maker’s stock has so far benefited from enthusiasm for artificial intelligence (AI).
Roblox plunges 21% after disappointing expectations on its annual forecasts.
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(Written by Augustin Turpin)
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