Jobless claims surge to highest level since August 2023
Published On Oct 10, 2024, 9:21 AM
The latest data from the Department of Labor shows that unemployment claims have surged to 258,000 for the week ending October 5, 2024, marking the highest level since August 2023 and exceeding economists' expectations. The increase in claims indicates a cooling labor market, even amid a strong jobs report from September where 254,000 jobs were added. The rise in jobless claims aligns with a slight drop in the unemployment rate from 4.2% to 4.1%. Additionally, the market is reacting to these indicators with a decreased likelihood of interest rate cuts by the Federal Reserve in November.
Stock Forecasts
SPY
Negative
Given the rise in jobless claims and the cooling labor market, there may be increased volatility in stocks, particularly in sectors sensitive to economic changes, such as consumer discretionary and financials.
XLP
Positive
The increasing jobless claims could also indicate a potential slowdown in consumer spending and economic activity, suggesting that defensive sectors may be more favorable in the short term.
Related News
Here’s the deflation breakdown for September 2024 — in one chart
Oct 11, 2024, 1:58 PM
Prices in segments of the U.S. economy, like some imported goods, consumer electronics and gasoline, have deflated since September 2023.
Capitalist Pig hedge fund manager Jonathan Hoenig weighs in on market rallies, his concern for everyday Americans amid inflation, and his stock pick.
Jamie Dimon warns of 'critical issues' that could affect US economy
Oct 11, 2024, 12:25 PM
JPMorgan Chase & Co. chief Jamie Dimon on Friday sounded the alarm about "critical risks" to the U.S. economy in the bank's third quarter earnings report.