US equity indexes rose after midday Thursday as the probability for interest-rate cuts penciled in for this year increased following the March monetary policy meeting and weekly jobless claims jumped.

The Nasdaq Composite rose 0.4% to 17,812.8, with the S&P 500 up 0.2% to 5,687.5 and the Dow Jones Industrial Average 0.4% higher at 41,118.3. The communication services sector was the top gainer intraday, while consumer staples led the decliners.

On Wednesday, the Federal Open Market Committee held interest rates at 4.25% to 4.5%, as expected, downgraded its outlook for economic growth by 0.4%, and increased its inflation projection by 0.3%, according to a note from DA Davidson. The Fed also indicated that it expects more interest-rate cuts through the end of 2025. As per the CME FedWatch Tool, the highest probability currently is for three cuts by the end of the year, with that likelihood increasing to 33% after the FOMC meeting compared with 14% a month ago.

"The Fed's easing bias remains in place," Morgan Stanley's economists and strategists, including Michael Gapen, said in a note Thursday. "We retain our call for a June rate cut on our favorable inflation forecast, though we view the bar as higher now than before. The Fed also appears comfortable letting the balance sheet shrink further."

Almost all US Treasury yields fell intraday, with the 10-year yield down 2.5 basis points to 4.23%.

In economic news Thursday, US initial jobless claims rose to 223,000 in the week ended March 15 from an upwardly revised 221,000 in the previous week, below expectations for 224,000 in a survey of analysts compiled by Bloomberg.

West Texas Intermediate crude oil futures jumped 1.8% to $68.35 a barrel.

In company news, Accenture (ACN) pointed to a potential slowdown in federal revenue as the Trump administration pushed to cut federal spending but still raised the midpoint of its full-year financial outlook. Its shares dropped 7.5% intraday, the worst performer on the S&P 500.