Shares fell slightly on Friday, giving back some of the big gains seen in the previous session, but are still on track for a strong weekly gain.
The Dow Jones Industrial Average fell 56 points, or 0.1%. The S&P 500 index declined 0.2%, and the Nasdaq Composite fell 0.2%.
Stocks surged during the session on Thursday, with the S&P 500 up 1.7% and closing above the 5,700 level for the first time. The Dow also ended more than 500 points higher to record its first close above 42,000. Both indices also hit all-day highs. The Nasdaq Composite rose 2.5%.
The unemployment data, along with a half-point interest rate cut by the Fed on Thursday, appeared to boost investor confidence. Initial jobless claims, which came in at 219,000 for the week of September 14, were lower than expected and showed a decline from the previous week.
"The first economic data point since this 'massive' rate cut should be encouraging to the [Federal Reserve]," said Chris Larkin, managing director of trading and investments for E-Trade from Morgan Stanley. "Lower-than-expected jobless claims will not raise immediate concerns about a labor market slowdown."
The Fed's decision on Thursday marked the first rate cut since 2020.
The three major indexes are expected to post weekly gains, with the S&P 500 up nearly 1.6% by the market close. The Dow posted a 1.5% jump for the week, while the Nasdaq outperformed with a 1.9% gain.
In corporate news, shares of shipping giant FedEx fell more than 13% after the company cut its full-year revenue forecast and lowered its earnings guidance. Nike jumped 7.5% after announcing that CEO John Donahoe will step down on October 13.
