by David French

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Thursday, with the Dow Jones finishing in the green for a seventh straight session, as U.S. jobs data revived hopes for the Federal Reserve (Fed) will cut interest rates this year.

The Dow Jones index gained 0.85%, or 331.37 points, to 39,387.76 points.

The broader S&P-500 gained 26.41 points, or 0.51%, to 5,214.08 points.

The Nasdaq Composite advanced 43.51 points (0.27%) to 16,346.27 points.

Since the start of the year, the expected shift in monetary policy from the Fed has been the main catalyst on Wall Street.

The main indices fell in April after stronger-than-expected inflation data dampened hopes of an imminent rate cut, and because of tensions in the Middle East.

Renewed optimism about monetary easing once again lifted the Dow Jones and allowed the S&P-500 to rise again on Thursday, settling above 5,200 points for the first time since April 9.

Data published today show that weekly unemployment claims in the United States increased more than expected.

Investors are now awaiting reports on consumer and producer prices next week, in the hope that they will also reinforce the prospect of a rate cut.

Wall Street was reassured by the publication, last Friday, of the monthly report from the US Department of Labor, which supported market players’ hypothesis that the Fed is carrying out two rate cuts this year.

The fall in US Treasury yields also benefited stocks, particularly high-growth stocks like Apple, Amazon and Meta Platforms.

Ten of the eleven major sectors of the S&P-500 ended the session in the green, led by real estate.

On the value side, note the 2.3% decline in semiconductor manufacturer Arm Holdings after an annual turnover forecast lower than expectations.

Roblox plunged 22.1% following a downward revision to its guidance for the year.

(Written by Jean Terzian)

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