An unexpected drop in unemployment claims and retreating oil prices boosted confidence on Wall Street Thursday, sending stocks higher in light trading.

The latest Labor Department report showed continued strength in the nation’s labor market. First-time jobless claims fell by 5,000 to 326,000 last week. Analysts had expected claims to rise to around 335,000.

And crude oil futures fell one day after the bombings in Saudi Arabia raised new concerns about terrorism in the Middle East. A barrel of light crude was quoted at $43.40, down 24 cents from its overnight settling price on the New York Mercantile Exchange.

The Dow Jones industrial average was up 17.67 points, or 0.16 percent, at 10,846.86. The Standard & Poor’s 500 Index was up 2.53 points, or 0.21 percent, at 1,215.98. The Nasdaq Composite Index was up 5.03 points, or 0.23 percent, at 2,182.03.

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