Stocks rebounded Thursday, following two straight days of losses, as investors digested the Federal Reserve's latest plans to aggressively tighten its monetary policy to curb red-hot inflation. The Dow Jones Industrial Average rose over 87 points, while the S&P 500 Index ticked 0.4% higher and the Nasdaq Composite settled near a positive flatline.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): +0.43% or +19.12 points to 4,500.27

Dow Jones Industrial Average (DIA  ): +0.25% or +87.52 points to 34,584.03

Nasdaq Composite Index (QQQ  ): +0.06% or +8.48 points to 13,897.30

Macy's warns inflation could drive consumers to spend on travel over shopping:

Macy's (M  ) Chief Financial Officer Adrian Mitchell said Thursday that inflation is expected to weigh on consumer demand, leading shoppers to be more likely to spend money on travel than goods.

"The biggest challenge that we've had in terms of thinking about managing through the beginning of 2022, is where is the demand going to come from," Macy's Chief Financial Officer Adrian Mitchell said during a presentation on Thursday at JPMorgan's (JPM  ) annual Retail Round-Up event, CNBC reports.

"We do believe the demand is out there," he said. " We do believe that the consumer is going to be spending. But are they going to be spending on discretionary items that we sell, or are they going to be spending on an airline ticket to Florida, or travel, or going out to restaurants more?"

Mitchell said Macy's is seeing less demand for certain home goods and apparel compared to the peak of the pandemic."Even though the economy is healthy, we do see that inflation is elevated more so than what we expected coming into the year," he added, quoted by CNBC. "And we also recognize that the supply chain disruptions are not solved."

Jobless claims fall to over 50-year low:

First time unemployment claims fell much more-than-expected last week as the rate of new layoffs and firings remained comparable to pre-pandemic averages.

Initial jobless claims for the week ended April 2 totaled 166,000, according to the Labor Department's latest report published Thursday, falling to the lowest level since 1968. This print was below the previous week's revised total of 171,000. Continuing jobless claims, however, ticked higher to 1.523 million for the week ended March 26, coming above the previous week's revised total of 1.506 million.

Here's how benchmarks started trading after market open:

S&P 500 Index: -0.13% or -6.00 points to 4,475.15

Dow Jones Industrial Average: -0.26% or -88.56 points to 34,407.95

Nasdaq Composite Index: -2.22% or -315.35 points to 13,888.82