The Dow jumps 200 points as a weak jobs report raises hopes of interest rate cuts

The Dow and other indexes opened higher on Thursday as the latest jobs report suggests the Federal Reserve may lower interest rates this year.

Weekly jobless claims have risen to 231,000, up by 22,000 from the previous week. According to the Department of Labor, this marks the highest level since August. This has raised hopes among investors that the central bank may reduce interest rates at some point this year.

Meanwhile, the Bank of England left interest rates unchanged but signaled that it may reduce them in the coming months, while the Swedish Riksbank lowered interest rates for the first time since 2016 and is expected to do so again this year.

In the mid-morning, the Dow Jones Industrial Average added 182 points, or 0.4%, to 39,239. Meanwhile, the S&P 500 popped 0.3%, while the tech-heavy Nasdaq Composite rose 0.2%.

Robinhood shares are up, despite being under the SEC’s scrutiny

Robinhood’s shares popped 0.16% on Thursday morning following the announcement of a record quarterly revenue and profits that exceeded analysts’ predictions. In its latest earnings report, the company posted a net income of $157 million, or 18 cents per share, on revenue of $618 million, exceeding Wall Street’s expectations of 6 cents per share on revenue of $553 million.

The online trading platform, with a crypto arm that is on the radar of the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws, is thriving on cryptocurrency. In the first quarter, the company generated $126 million in revenue through crypto transactions, up 232% from last year.

Warner Bros. Discovery jumped after releasing its earnings report

On Thursday, Warner Bros. Discovery announced a strong first-quarter showing for its streaming unit, even as its studios division underperformed.

The direct-to-consumer (DTC) unit — which includes streaming services like Max and premium television like HBO — turned a first-quarter profit of $86 million for the January to March quarter, compared to $50 million last year. In 2023, the New York-based entertainment giant became the first company to make streaming profitable over the course of a full year. During the first quarter of 2024, Warner Bros. Discovery said it added 2 million DTC subscribers, bringing its total to 99.6 million.

Shares were up 1.2% in mid-morning trading.

Airbnb stock drops on weak outlook

After the closing bell on Wednesday, Airbnb reported first-quarter results that beat analysts’ estimates but offered weaker guidance than expected. Consequently, its shares fell over 6% in mid-morning Thursday. Earnings per share came in at 41 cents, compared with 24 cents expected. The company generated $2.14 billion in revenue, compared to the $2.06 billion expected.

However, the company announced its second-quarter revenue will be between $2.68 billion and $2.74 billion, missing analysts’ expectations of $2.74 billion.

Airbnb was powered by the solar eclipse in its first quarter, reporting record bookings from travelers viewing the celestial event.

“We had our best Q1 ever,” said Brian Chesky, Airbnb’s CEO during the company’s earnings call on Wednesday. “I’m proud of our strong Q1 results and look forward to another record summer travel season.”

Over 500,000 guests booked stays on Airbnb during the eclipse.

-William Gavin and Francisco Velasquez contributed to this article