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Major indexes at fresh record highs

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US weekly jobless claims rise moderately

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Small-caps edge lower, financials fall

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Fed likely to cut rates by 25 bps

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Indexes: Dow down 0.04%, S&P 500 up 0.61%, Nasdaq up 1.30%

(Updated at 11:40 a.m. ET/1640 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Nov 7 (Reuters) - Wall Street's main indexes added to

their gains on Thursday in the run-up to the Federal Reserve's

interest-rate decision, extending a sharp rally sparked by

Donald Trump's stunning comeback as U.S. president for a second

time.

Traders have about fully priced in a 25-basis-point rate

cut, but will keep a close watch on the central bank's

commentary for clues on the future path of monetary easing.

Investor expectations that Trump would lower corporate taxes

and loosen regulations had lifted all three major indexes in the

previous session.

Adam Turnquist, Chief Technical Strategist for LPL Financial

said it was the S&P 500's best post-Election Day performance on

record.

On Thursday too, all the three major indexes were trading

near record highs, but going ahead much would depend on the

central bank's rate-cut outlook.

Traders have trimmed their bets to just two rate cuts in

2025 on consistently robust economic data and after accounting

for the chances of higher inflation stemming from Trump's

proposed tariffs and government spending.

"(The election) could slow the Fed's cutting speed next

year, I still think you cut today and in December by 25 basis

points, and as you go into next year it turns into quarterly

cuts," said Frank Rybinski, head of macro strategy at Aegon

Asset Management.

"But at the end of the day, the pendulum is shifting

towards lower rates."

Treasury yields are hovering near multi-month highs, though

the benchmark 10-year yield eased slightly.

Meanwhile, some of the Trump trades that surged after his

sweeping victory gave back gains, with Trump Media & Technology ( DJT )

dropping 20%.

After hitting a record high on Wednesday, Financials

lost 1.4%, led by a 4.3% slide in JPMorgan Chase ( JPM ), which

also weighed on the Dow.

The small cap Russell 2000 slipped 0.1% in choppy

trading, but was still at around three-year highs it touched in

the last session.

Communication Services sector rose 1.6.%, while

rate-sensitive industrials edged lower and energy

lost 1%.

The Dow Jones Industrial Average fell 16.65 points,

or 0.04%, to 43,713.28, the S&P 500 gained 36.38 points,

or 0.61%, to 5,965.42 and the Nasdaq Composite gained

247.11 points, or 1.30%, to 19,230.57.

Data showed U.S. weekly jobless claims rose marginally last

week, suggesting no material change in labor market conditions.

Focus is also on whether Republicans could win control of

both houses of Congress, making it easier for Trump's policies

to be enacted.

U.S.-listed shares of chip designer Arm Holdings

rose 6%, reversing early losses as its quarterly forecasts

disappointed investors.

Warner Bros Discovery ( WBD ) soared 10.5% after a surprise

third-quarter profit.

The VIX, Wall Street's "fear gauge," was trading at a

six-week low.

Advancing issues outnumbered decliners by a 1.84-to-1 ratio

on the NYSE and a 1.33-to-1 ratio on the Nasdaq.

The S&P 500 posted 45 new 52-week highs and three new lows

while the Nasdaq Composite recorded 156 new highs and 59 new

lows.