Wall St set to open higher as jobless claims data calm rate hike worries

Wall St set to open higher as jobless claims data calm rate hike worries

Wall Street’s main indexes were set to open higher on Thursday as data pointing to signs of a cooling labor market eased worries over future interest rate hikes by the US Federal Reserve.

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Initial claims for unemployment benefits rose 9,000 to a seasonally adjusted 225,000 for the week ended Dec. 24, the Labor Department said. Economists polled by Reuters had forecast 225,000 claims for the latest week.

The report suggested that the rapid interest rate hikes were starting to take a toll on the labor market, bolstering hopes that the US central bank would dial down its aggressive stance.

“Signs of the job market beginning to weaken is certainly apparent,” said Peter Cardillo, chief market economist, Spartan Capital Securities LLC.

“We’re at the end of the year and of course, the market has not performed well. We’re seeing some bargain hunting coming in today.”

Traders held on to bets of a 25 basis point rate hike from the Federal Reserve in February and see rates peaking at 4.92 percent in June 2023.

A strong labor market and resilient American economy have fueled worries that interest rates could stay higher for longer even though