Stocks closed higher Thursday as a softer-than-expected weekly jobless claims report rekindled investor optimism that the Federal Reserve may have room to cut interest rates before year-end. Initial claims came in at 228,000 — below the 242,000 estimate — suggesting the labor market is cooling gradually rather than cracking, a combination traders have been hoping for all spring.
Technology led the charge, with the Nasdaq outperforming its peers for the second consecutive session. Nvidia was the standout name, rallying over 3% on a fresh analyst upgrade that pointed to surging demand for AI chips across cloud and enterprise customers. The move helped lift the broader semiconductor index and dragged other large-cap tech names along for the ride.
Energy and healthcare lagged. Oil slipped modestly to around $74.80 a barrel amid mixed signals from OPEC+ on production timelines, keeping energy stocks under pressure. CVS Health was the session's most notable loser, tumbling more than 4% after cutting its full-year profit outlook — a reminder that managed care and pharmacy economics remain under strain.
Gold held near $2,341 as the dollar softened slightly on the rate-cut narrative. The VIX eased to 17.4, reflecting a market that is cautiously comfortable — not complacent, but no longer bracing for immediate shock.