Important points
- The number of new unemployment insurance claims in the United States was 198,000, higher than the expected 215,000 and down from the previous week’s revised figure of 207,000.
- Markets rose on the news, with the S&P 500 up 0.5% and the Nasdaq up more than 1% as labor data confirmed expectations for stable Fed policy.
The number of new U.S. jobless claims fell to 198,000 this week, lower than expectations of 215,000 and a revised preliminary reading of 207,000, according to the latest data from the Bureau of Labor Statistics.
Weekly claims reflect the number of people applying for unemployment benefits for the first time. Economists say the continued low level of claims suggests that layoffs remain contained even as hiring slows.
Factors such as former President Trump’s trade and immigration policies and corporate investment in AI are constraining both labor demand and supply, creating uncertainty in staffing decisions.
Stocks opened higher on the data, with the S&P 500 up nearly 0.5% and the Nasdaq up more than 1% in early trading. The CME FedWatch tool still shows a 95% chance the Fed will keep interest rates between 3.5% and 3.75% at its late January meeting.
