Stock market today: Indexes climb as drop in jobless claims boosts investors' confidence

Last week's jobless claims fell 17,000 to 233,000, down from an 11-month high of 250,000 the week prior, according to Labor Department data released Thursday.

That's the biggest fall in unemployment filings in almost a year, clocking in below estimates of 240,000. The reading should give investors greater confidence in the labor market after last week's weak nonfarm payroll report for July sparked fresh concerns about a looming recession.
The data "could provide a boost for the market," Chris Zaccarelli, CIO for Independent Advisor Alliance, said in a Thursday note.

"The signs of slowing growth are obvious to all who care to look, but with a starting point of +2.8% GDP growth, it's hard to believe a recession has already begun. We are exercising caution but think that the panic that started earlier in the month was overblown," he added.

The 10-year Treasury yield rose after the report, increasing three basis points rise above 4%.

The data comes after last week's disappointing jobs report and a surprise rate hike from the Bank of Japan fueled a historic three-day sell-off through Monday.

Investors remain focused on the Fed's next move and are currently pricing in a 100% chance of rate cuts in September, according to the CME FedWatch tool. Some economists called for emergency rate cuts earlier this week, but experts say the Fed will likely wait until September.

Meanwhile, JPMorgan analysts said they expect a 35% chance of a recession by the end of the year, up from their earlier figure of 25% at the start of July.

The next big data point for investors will be next week's inflation reading, with the July consumer price index report set to be released on August 14.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

S&P 500: 5,252.13, up 1.10%
Dow Jones Industrial Average: 39,039.91, up 0.71% (+276 points)
Nasdaq composite: 16,371.53, up 1.08%
Here's what else is going on today:

After a historic sell-off rocked markets earlier this week, some experts expect the market turmoil to continue, while others say it was a blip.
Warren Buffett's Berkshire Hathaway now owns more short-term Treasurys than the Fed.
US oil production hit a record of 13.4 million barrels per day last week, up from 12.6 million barrels each day a year ago.
In commodities, bonds, and crypto:

Oil futures were lower. WTI crude was down slightly to $75.20 a barrel. Brent crude, the international benchmark, fell 0.1% to $78.18 a barrel.
Gold rose 1.23% to $2,412.05 per ounce.
The 10-year Treasury yield increased three basis points to 4.003%.
Bitcoin rose 0.37% to $57,592.39.
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