The Dow Jones industrial average fell 10 points in morning trading. In recent months, a disappointing weekly jobs report would have likely led to a big sell-off in stocks.
However losses have been limited following weak economic reports recently because such weakness supports expectations the Fed will step in to support growth.
Traders sent the dollar lower and gold higher Thursday because of the expected Fed action. The Fed is expected to buy government bonds, which would drive down interest rates down from already low levels. That makes gold and other currencies where interest rates are higher more attractive than the dollar.
Gold hit another record high, while the dollar fell to a 15-year low against the yen and touched its lowest level against the euro since January.
The Dow fell 10.06, or 0.1 percent, to 11,085.41. The Standard and amp; Poor's 500 index fell 1.90, or 0.2 percent, to 1,176.20, while the Nasdaq composite index fell 1.36, or 0.1 percent, to 2,439.87.
The government said Thursday that unemployment benefits rose last week for the first time in three weeks. Claims remain stuck at levels that signal employers are not ramping up hiring.
High unemployment remains a key obstacle to a stronger economy and any Fed action would be partially aimed at reviving job growth.
Low inflation is also a concern for the Fed. At its meeting last month, the Fed hinted that future bond purchases would help get inflation back to more historically normal levels. The lower interest rates are also aimed at sparking new borrowing and spending by companies and consumers. More spending would drive prices for goods higher.
The Producer Price Index, a measure of the cost of goods before they reach consumers, rose 0.1 percent last month excluding volatile energy and food costs.
Bond prices were mixed Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.44 percent from 2.42 percent late Wednesday. It has been falling regularly in recent weeks because the Fed will likely ramp up its purchase of the bonds to help the economy.
Gold touched a record of $1,388.10 an ounce before pulling back to $1,374.20 an ounce.
