The Nasdaq Composite showed slight gains on Thursday as investors analyzed the latest economic data and eagerly awaited tomorrow's release of the Federal Reserve's preferred inflation gauge, the PCE data.

Encouraging news came from the job market, as initial jobless claims fell last week, indicating a positive trend in employment. Additionally, the Bureau of Economic Analysis revised its first-quarter estimate for GDP growth, revealing a 1.4% expansion. These indicators provide a glimmer of hope for the US economy, as it continues to recover from the impact of the COVID-19 pandemic.

Meanwhile, oil futures recorded an extension in gains, driven by escalating political risks and expectations of tightness in the third quarter. Citi Research analysts emphasized that renewed tensions in regions like Russia/Ukraine and the Middle East could potentially push oil prices higher. They cautioned, however, that a significant loosening of supply and demand balances would be necessary before any notable downside pressure could occur.

It is worth noting that oil markets this year have exhibited a pattern of overshooting expectations, fueled either by geopolitical fears or anticipation of supply and demand dynamics, before swiftly correcting themselves. Citi Research advised caution, stating that current oil price levels seem to be too high.

At the close of the trading day, West Texas Intermediate (WTI) settled up 1% at $81.74 per barrel, while Brent crude experienced a 1.3% rise, reaching $86.39 per barrel. These gains reflect the growing uncertainty in the global political landscape and the anticipation of potential supply constraints in the coming months.

While the Nasdaq Composite made modest gains, investors remain cautious, closely monitoring economic indicators and geopolitical developments that will shape market movements in the near future.