US Labor Market Tightens, Jobless Claims Fall
$DIA, $SPY, $QQQ, $RUTX, $VXX
The number of Americans filing for unemployment benefits fell last week, pointing to a further tightening in labor market conditions.
The robust US labor market and firming inflation have cemented expectations the Fed will raise interest rates next week at the FOMC meeting.
Many economists believe the Fed will hike rates 2X after its 12-13 June policy meeting to prevent the economy from overheating.
The Fed lifted borrowing costs in March and forecast at least 2 more rate increases for this year.
Initial claims for state unemployment benefits decreased 1,000 to a seasonally adjusted 222,000 for the week ended 2 June, the Labor Department said on Thursday.
Claims data for the prior week was revised to show 2,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 225,000 in the latest week.
The labor market is considered to be close to or at full employment.
NFPs increased by 223,000 jobs in May and the unemployment rate dropped to an 18-year low of 3.8%.
The US jobless rate, which has declined by 3/10ths of a percentage point this year, is now at a level where the Fed projected it would be by the end of this year.
Thursday, the major US stock market indexes finished at: DJIA +95.02 at 25241.41, NAS Comp -54.17 at 7635.07, S&P 500 -1.98 at 2770.37
Volume: Trade on the NYSE came in at 883-M/shares exchanged
- NAS Comp +10.6% YTD
- Russell 2000 +8.6% YTD
- S&P 500 +3.6% YTD
- DJIA +2.1% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis