Stocks rally, bonds steady as data affirms rate cut outlook

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NEW YORK/LONDON, April 4 - Global shares rallied and bond yields were steady on Thursday after an increase in new claims for U.S. unemployment benefits kept the outlook for the Federal Reserve to cut interest rates intact as the market awaits a key jobs report at week's end.

"We're seeing that people are getting jobs and even though you may have had a bit more people who got laid off, we got a lot more of them getting jobs," said Steven Ricchiuto, U.S. chief economist at Mizuho Securities in New York. On Wall Street, the Dow Jones Industrial Average , opens new tab rose 0.42%, the S&P 500 , opens new tab gained 0.66% and the Nasdaq Composite , opens new tab added 0.86%.

The two-year Treasury yield, which reflects interest rate expectations, rose 1 basis points to 4.689%, while the yield on the benchmark 10-year note was down 0.8 basis points at 4.347%.

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