US Stock Market Rises on Hopes for Interest Rate Cut: Unemployment Benefits Soar in Latest Labor Data

The Dow Jones Industrial Average continued to rise for a seventh straight session on Thursday, on renewed hopes for a US interest rate cut later this year, after labor office data showed an increase in applications for… Unemployment benefits Every week in the United States.

The three main indexes rose on Wall Street supported by expectations of a rate cut.

It should be noted that the main reason for investor sentiment in 2024 is the policy of the Federal Reserve Bank (US Central Bank) on interest rates, and it is hoped that the bank will reduce borrowing costs this year. to push the Dow Jones Index towards its all-time high. a series of gains since December, to close At the highest levels since April 1.

At the end of the session, the Standard & Poor’s 500 index rose 0.52 percent to 5,214.57 points, and the Nasdaq index rose 0.28 percent to 16,347.72 points. Dow Jones rose 0.87 percent to 39,396.07 points.

Compensation for loss in April

US stock markets suffered back-to-back losses in April. As a result of anticipating a reduction in the US interest rate, and growing concern about rising tensions in the Middle East region.

With the recent increase, stock indexes compensated for a large part of their losses, even if their quarterly performance remained negative, as the Dow Jones reduced its loss from the beginning of the second quarter to… 1.1 percent, and Standard & Poor’s to 0.8 percent, and Nasdaq to 0.2 percent.

Markets are waiting for producer and consumer price data expected to be released next week to give any indication of the Federal Reserve’s interest rate decision.

But Labor Office data released on Thursday actually bolstered optimism about the interest rate cut, after it showed that claims for unemployment benefits in the United States rose to 231,000 claims, which was higher than analysts expected from 215,000 applications.

At the same time, a separate data showed last week Slowing job growth The US labor market hit three-year lows in March; Which raised investors’ hopes of cutting interest rates twice this year, after betting on just one cut earlier.