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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 0.64%, S&P 0.35%, Nasdaq 0.22%

(Updates to 1759 GMT/1359 ET)

By Shristi Achar A and David French

May 9 (Reuters) - U.S. stock indexes advanced on

Thursday, drawing renewed upward momentum as weekly jobless

claims data offered investors fresh hopes that a softening labor

market could lead the Federal Reserve to cut interest rates this

year.

U.S. central bank policy has been the main driver of

investor sentiment in 2024. Renewed hopes for coming rate cuts

have pushed the Dow Jones Industrial Average higher for

the last seven sessions.

While next week's producer and consumer prices readings

are regarded as the next key signpost on interest rates, 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.

"I would consider jobless claims a Fed friendly data, moving

in the right direction towards slowing the economy which should

help bring down inflation," said Charlie Ripley, senior

investment strategist for Allianz Investment Management.

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.

At 1:59 p.m. Eastern time, the S&P 500 gained 18.39

points, or 0.35%, to 5,206.06 points, while the Nasdaq Composite

gained 36.02 points, or 0.22%, to 16,338.78. The Dow

Jones Industrial Average rose 250.18 points, or 0.64%, to

39,306.57.

Ten of the 11 major S&P sectors rose, led by a 1.9% rise in

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

surged 10.3% after its first-quarter results.

On the flip side, chip designer Arm Holdings dipped

1.3% as its full-year revenue forecast came in below

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

report this earnings season, slipped 1.7%.

Other tech megacap stocks generally traded higher, including

Apple ( AAPL ), Amazon.com ( AMZN ) and Meta Platforms META.O>

rising between 0.5% and 1.3%.

Roblox ( RBLX ) slumped 20.5% 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 3.8% 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 12.1%, having hit

a record low earlier this week.