Aug 8 (Reuters) - Wall Street's main indexes opened higher on Thursday, bolstered by better-than-expected jobs data that eased worries of an imminent slowdown in the world's largest economy.
Data showed the number of Americans filing new applications for unemployment benefits fell more than expected last week, suggesting fears the labor market was unraveling were overblown.
Most megacap and growth stocks advanced, looking to stabilize after a free fall on Monday as disappointing jobs data last week sparked fears of a potential recession.
"Since the jobs report on Friday, everyone's been nervous about a recession ... The claims came in lower than expected, alleviating some of the fear that the labor market was completely rolling over," said Thomas Hayes, chairman at Great Hill Capital LLC.
"We have a reasonably robust economy and not an imminent recession, so we can wait a few more weeks for that final first cut from the Fed."
At 09:35 a.m. ET, the Dow Jones Industrial Average (.DJI), rose 268.69 points, or 0.69%, to 39,032.14, the S&P 500 (.SPX), gained 55.42 points, or 1.07%, to 5,254.92 and the Nasdaq Composite (.IXIC), gained 215.69 points, or 1.33%, to 16,411.49.
Global markets are still recovering from the rout earlier this week amid heightened volatility. Earlier in the day, J.P.Morgan raised the odds of a U.S. recession by the end of this year to 35% from 25%, citing easing labor market pressures.
The Nasdaq (.IXIC), closed 1% lower in the previous session, as tech stocks lost steam after a brief rebound following a global stocks rout, and weak demand in a 10-year Treasury auction.
Nine of the 11 major S&P sectors were trading higher, with information technology (.SPLRCT), and health care (.SPXHC), leading gains.
On the earnings front, Eli Lilly (LLY.N), jumped 10.5% after the drugmaker raised its annual profit forecast, and sales of its popular weight-loss drug Zepbound crossed $1 billion for the first time in a quarter.
Under Armour (UAA.N), surged 15.8% after the sports apparel maker posted a surprise first-quarter profit, benefiting from its efforts to cut inventory and promotions.
Bumble (BMBL.O), slashed its annual revenue growth forecast, stoking worries about the dating app operator's growth plans, sending its shares down 36%.
Warner Bros Discovery (WBD.O), dropped 7.9% after it wrote down the value of its TV assets due to the uncertainty of fees from cable and satellite distributors and sports rights renewals.
Monster Beverage (MNST.O), lost 12.9% after the energy drinks maker missed market expectations for second-quarter sales as budget-conscious consumers kept a tight lid on spending.
Markets will now focus on comments from Richmond Fed President Thomas Barkin, who will be speaking at 3 p.m. ET, for any clues on the U.S. central bank's next move.
Advancing issues outnumbered decliners by a 3.43-to-1 ratio on the NYSE and by a 2.64-to-1 ratio on the Nasdaq.
The S&P 500 posted no new 52-week highs and two new lows while the Nasdaq Composite recorded 7 new highs and 52 new lows.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Varun H K, Shinjini Ganguli and Saumyadeb Chakrabarty
