US unemployment rate dropped, giving a positive push to the stock market, according to a Labor Department report.
Weekly jobless claims fall to 233,000, less than expected, in a positive sign for labor market, the report issued Thursday showed. Initial jobless claims totaled a seasonally adjusted 233,000 for the week, a decline of 17,000 and lower than the Dow Jones estimate for 240,000, it added.
Stock market futures, which had been negative earlier, turned sharply positive after the release, it stated.
Initial claims for unemployment insurance totaled less than expected last week, countering other signs that the labor market is weakening.
First-time filings for jobless benefits came to a seasonally adjusted 233,000 for the week, a decline of 17,000 from the previous week’s upwardly revised level and lower than the Dow Jones estimate for 240,000, it noted.
The report comes with Wall Street on edge amid signs that job growth is slowing and even signaling a potential recession on the horizon. Stock marke
t futures, which had been negative earlier, turned sharply positive following the 8:30 a.m. ET release while Treasury yields held higher.
While the top-line number helped allay some fears, the level of continuing claims, which run a week behind, edged up to 1.875 million, the highest since Nov. 27, 2021.
Jobless claims have been trending higher for much of the year, though still remain relatively tame. The recent uptick has been attributed to disruptions from Hurricane Beryl as well as summer shutdowns at auto plants. Michigan and Texas reported the two biggest declines on the week, down 7,401 and 4,814 respectively, according to unadjusted numbers.
Source : Kuwait News Agency
