Stocks Rallied after Jobless Claims

U.S. stocks ended higher on Thursday, with investors reacting to jobless claims falling to a new COVID-19 era low, but wary of rising inflation may force the Federal Reserve to normalize monetary policy sooner rather than later. The Dow Jones Industrial Average rose 188.11 points, or0.55%, to 34,084.15. The S&P 500 added 43.44 points, or 1.06%, to 4,159.12. The Nasdaq Composite gained 236.00 points, or 1.77%, to 13,535.74.

The number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week. Initial claims for state unemployment benefits fell 34,000 to a seasonally adjusted 444,000 for the week ended May 15, the Labor Department said. That was the lowest since mid-March 2020 and held claims below 500,000 for two straight weeks.