US stocks rise on hopes of interest rate cuts
Wall Street stocks climbed on Thursday as economic data raised hopes that the US central bank is on track for interest rate cuts later this year. The Dow Jones rose 0.9 percent to 39,387, while the S&P 500 jumped 0.5 percent to 5,214. The Nasdaq added 0.3 percent to 16,346. The gains came after initial jobless claims rose to the highest level since last August, to 231,000 for the week ending May 4. A higher level of claims – if the trend persists – could be seen as a sign of the labour market cooling down, giving the Federal Reserve impetus to lower interest rates. Peter Cardillo of Spartan Capital said the higher unemployment claims has helped bond markets. US Treasury bond yields, a proxy for interest rates, moved lower. While rate cuts will depend on subsequent inflation data, he added: "We are seeing some cracks in the labour market and when that happens, that eventually leads to slow economic activity." Meanwhile, the Bank of England kept interest rates at a 16-year high but signalled it could cut rates over the summer. Among companies reporting results, Warner Bros. Discovery closed 3.1 percent up while Arm Holdings slumped by 2.3 percent. Airbnb shares slid by 6.9 percent. (AFP)