US STOCKS-S&P 500, Dow gain as markets cheer resilient economy, focus shifts to earnings

The S&P 500 and the Dow climbed on Thursday after upbeat labor market data soothed jitters about the U.S. economy, with investors redirecting their attention to a packed lineup of company earnings. Traders were reassured by signs of resilience in the economy after Wednesday's ‌data revealed robust jobs growth and a dip in unemployment numbers, even as they scaled back expectations for interest-rate cuts.

At least one reduction is still expected in June, but chances of the U.S. Federal Reserve holding borrowing costs steady have risen to almost 40% from 24.8% earlier, according to CME Group's FedWatch tool. Data released on Thursday showed weekly jobless claims decreased less than expected last ‌week, another sign of a stable labor market. The crucial Consumer Price Index inflation report for January is due on Friday.

"A softer inflation print would keep rate cuts ‌firmly priced in and could restore upward momentum in risk assets," said Daniela Hathorn, senior market analyst at Capital.com. "In the near term, the interplay between resilient employment and moderating inflation will determine whether markets lean toward optimism or renewed caution."

Wall Street's indexes had ended the previous session on a subdued note, with sentiment pressured by weakened rate-cut bets and a renewed selloff in software stocks as markets continued to punish sectors they deem vulnerable to AI ⁠disruption. At 09:49 ​a.m. ET, the Dow Jones Industrial Average rose 207.11 ⁠points, or 0.42%, to 50,328.51. The S&P 500 gained 14.56 points, or 0.21%, to 6,956.03, while the Nasdaq Composite lost 12.03 points, or 0.05%, to 23,054.44.

The S&P 500 consumer staples and industrial stocks provided the biggest boosts ⁠and were up 1% and 1.4%, respectively. Marginal declines in heavyweight tech stocks capped gains on the benchmark index and dragged down the Nasdaq.

A rise in financial stocks such as Goldman Sachs and American Express lifted ​the Dow. Corporate earnings remained front and center. AppLovin shares fell 15.7%, to the bottom of the S&P 500, after its fourth-quarter results. The marketing platform has lost nearly ⁠a third of its value in the first six weeks of the year as competition heats up.

Equinix jumped 14% after the largest data-center operator forecast annual revenue above estimates on Wednesday, betting on strong AI-linked demand. It boosted ⁠the ​S&P 500 real estate index 2.2%. Cisco shed 9% after the networking equipment provider posted quarterly adjusted gross margin below estimates.

Personal-computer makers fell after China's Lenovo warned of shipment pressure due to a memory-chip shortage. HP and Dell Technologies lost about 5% each. Comments from Bank of Dallas President Lorie Logan and Governor Stephen Miran scheduled later in the day.

Meanwhile, a South ⁠China Morning Post report said the United States and China could extend their trade truce for up to a year, when their leaders are expected to meet in Beijing in early ⁠April. The U.S. House of Representatives narrowly backed ⁠a measure disapproving of tariffs on Canada, with lawmakers voting to terminate the use of a national emergency.

Advancing issues outnumbered decliners by a 1.74-to-1 ratio on the NYSE, and by a 1.07-to-1 ratio on the Nasdaq. The S&P 500 posted 89 new 52-week highs and 15 ‌new lows, while the Nasdaq Composite ‌recorded 89 new highs and 92 new lows.