US weekly jobless claims hit seven-month low

The reduction in jobless claims points to a potentially improving labor market, which could support stock performance as investor confidence may rise. Sectors that are sensitive to labor market dynamics, like consumer discretionary and industrials, could see a positive reaction as job stability translates to consumer spending.

The increase in continuing claims highlights some persistent issues in the job market, indicating that not all sectors are rebounding equally. This could weigh negatively on economic growth forecasts and affect sectors like healthcare and utilities, usually seen as safer during downturns but could underperform if economic optimism increases.