At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 30 points, or 0.1%, the S&P 500 climbed 3 points, or 0.1%, and the NASDAQ Composite rose just 2 points, or 0.1%.

Investors try to gauge U.S. economic health

The main indices rallied strongly on Wednesday after slightly softer-than-expected consumer price index data saw traders grow more convinced that the Federal Reserve will begin cutting interest rates in September. 

Still, while inflation did ease in April, it still remained well above the Fed’s 2% annual target. It also came on the heels of a stronger-than-expected producer price index print on Tuesday. 

Data released earlier Thursday showed that the number of Americans filing for first-time unemployment benefits was higher than anticipated last week, although the figure declined compared to the prior period.

Initial jobless claims in the U.S. fell to 222,000 in week ended on May 11, down from an upwardly revised total of 232,000 in the previous week. Economists had called for a reading of 219,000.

The numbers come as officials at the Federal Reserve attempt to assess the health of the U.S. jobs market.

Signs of softening in labor demand could relieve some upward pressure on wages and, by extension, inflation, potentially bolstering the case for the Fed to cut interest rates down from more than two-decade highs.

Data earlier this month showed that the U.S. economy added the fewest number of jobs in six months in April, while the pace of annual wage growth dropped below 4% for the first time in almost three years.