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Dow gains for 7th session; S&P hits highest close since

Apr. 9

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Weekly jobless claims rise more than expected

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Roblox ( RBLX ) slumps after bookings forecast cut

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Focus on next week's inflation readings

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Indexes up: Dow 0.85%, S&P 0.51%, Nasdaq 0.27%

(Adds closing prices)

By David French

May 9 (Reuters) - The Dow Jones Industrial Average

closed higher on Thursday, the seventh straight daily advance

for the benchmark, as all three major U.S. indexes gained after

weekly jobless claims data offered fresh hope for interest-rate

cuts.

U.S. Federal Reserve policy has been the main driver of

investor sentiment in 2024. Renewed hopes the central bank will

cut rates have pushed the Dow to its biggest rally since

December. It closed at its highest since April 1.

Other benchmarks also benefited. After a flat day on

Wednesday, the S&P 500 resumed its upward trajectory and

closed above 5,200 points for the first time since April 9.

U.S. equity markets have clawed back losses incurred during

April on fears the Fed may ultimately raise interest rates, and

as tensions in the Middle East threatened to escalate.

"We've almost had a full recovery of that," said Brad

Bernstein, managing director at UBS Private Wealth Management.

For the quarter thus far, the Dow is 1.1% lower, the S&P 500

is 0.8% down and the Nasdaq Composite is off 0.2%.

While next week's producer and consumer prices readings are

regarded as the next key signpost, other data have buoyed

investor rate-cut hopes.

The number of Americans filing new claims for unemployment

benefits increased more than expected to a seasonally adjusted

231,000 last week, data showed. Economists polled by Reuters had

forecast 215,000 claims.

Last week's data showing slowing job growth in April and job

openings falling to a three-year low in March had investors

pricing in one or two rate cuts by the Fed this year. Prior to

that, traders were pricing in just one rate cut.

Declining U.S. Treasury yields also supported stocks since

higher rates offer investors less risk while also making

borrowing to fuel growth more expensive. The yield on the

10-year note was at 4.46% on Thursday, down from 4.7% two weeks

ago.

"In the last few days, we've had some interesting events

which have really helped calm the bond market," said Bernstein,

noting factors including the U.S. Treasury and Fed announcing

plans to buy Treasuries.

Lower yields are particularly supportive for tech megacap

stocks, Apple ( AAPL ), Amazon.com ( AMZN ) and Meta Platforms

META.O> rose between 0.6% and 1%.

The S&P 500 gained 26.41 points, or 0.51%, to

5,214.08 points, while the Nasdaq Composite gained 43.51

points, or 0.27%, to 16,346.27. The Dow Jones Industrial Average

rose 331.37 points, or 0.85%, to 39,387.76.

Ten of the 11 major S&P sectors rose, led by a 2.3% rise in

the real estate index. Data center operator Equinix ( EQIX )

surged 11.5% after its first-quarter results.

On the flip side, chip designer Arm Holdings dipped

2.3% as its full-year revenue forecast came in below

expectations. Bigger rival Nvidia ( NVDA ), which is still to

report this earnings season, slipped 1.8%.

Roblox ( RBLX ) slumped 22.1% after the video-gaming

platform cut its annual bookings forecast, in a sign that people

were dialing back spending amid an uncertain economic outlook

and elevated levels of inflation.

Robinhood Markets ( HOOD ) was 3.1% lower, despite the

online brokerage beating estimates for first-quarter profit,

thanks to robust crypto trading volumes and rate hikes that

boosted its net interest revenue.

Meanwhile, Spirit Airlines ( SAVE ) jumped 12.9%, having hit

a record low earlier this week.