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Major indexes at fresh record highs

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US weekly jobless claims increase moderately

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Small-caps edge lower, financials fall

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Indexes up: Dow 0.16%, S&P 500 0.46%, Nasdaq up 0.88%

(Updated at 9:50 a.m. ET/1450 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Nov 7 (Reuters) - Wall Street's main indexes held on 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 at

record highs.

"You have a pretty solid economy ... a Fed that's cutting

interest rates and incoming administration that is pretty pro

growth and equity markets," said Sameer Samana, senior global

market strategist at Wells Fargo Investment Institute.

However, much would depend on the central bank's rate-cut

outlook. Traders have already 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 Fed's commentary about the rate-cut outlook will be

particularly important for markets, given the recent

post-election surge in bond yields," said Glen Smith, chief

investment officer, GDS Wealth Management.

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 16%.

After hitting a record high on Wednesday, Financials

lost 1.1%, led by a 2.9% slide in JPMorgan Chase, which also

weighed on the Dow.

The small cap Russell 2000 slipped 0.1%, but was

still trading around three-year highs it touched in the last

session.

Information technology sector rose 1.1.%, while

rate-sensitive industrials edged lower and energy

lost 0.8%.

The Dow Jones Industrial Average rose 71.53 points,

or 0.16%, to 43,801.46, the S&P 500 gained 27.22 points,

or 0.46%, to 5,955.73 and the Nasdaq Composite gained

167.47 points, or 0.88%, to 19,150.94.

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.

Qualcomm ( QCOM ) shares jumped 1.7% after the chipmaker

forecast current-quarter results above estimates, while

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

3.1% as its quarterly forecasts disappointed investors.

Warner Bros Discovery ( WBD ) soared 14.2% 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 1.95-to-1 ratio

on the NYSE and a 1.45-to-1 ratio on the Nasdaq.

The S&P 500 posted 34 new 52-week highs and one new low,

while the Nasdaq Composite recorded 121 new highs and 32 new

lows.