US weekly jobless claims decline beyond expectations

TradingKeyJul 26, 2024 1:04 PM

- Initial jobless claims in the U.S. decreased by 10,000 to 235,000 for the week ended July 20, surpassing economists' expectations of 238,000 claims.

- Layoffs are low historically, but the labor market slowdown is attributed to reduced hiring due to the Federal Reserve's interest rate hikes.

- Expectations of a rate cut in September followed by more cuts in November and December are prevalent in the financial markets.

The number of Americans filing new jobless claims dropped by 10,000 to 235,000, exceeding expectations, with the labor market slowdown linked to reduced hiring amidst the Federal Reserve's interest rate hikes. Expectations for rate cuts in September, November, and December are prevalent in financial markets.

The Labor Department reported a decrease in initial jobless claims to 235,000 for the week ending July 20, outperforming economists' forecasts. The slowdown in hiring, influenced by the Federal Reserve's interest rate increases, is impacting the labor market, with expectations of upcoming rate cuts in September and beyond being widely anticipated by financial markets.

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