Stocks are falling even after U.S. jobless claims dropped more than expected.
initial jobless claims hit 310,000, beating forecasts for 350,000. It is was the lowest reading since before the pandemic-driven lockdowns were put in place in early 2020, something that has now occurred for two weeks in a row. Continuing claims fell to 2.78 million from 2.8 million, another pandemic-era low. The strong data were a welcome sight for investors, as the August jobs report showed a slower addition of jobs in the U.S. than expected, partly because of a shortage of labor.
“Bottom line, we know the challenge for the labor market is the supply of workers and thus follows that there has been a big decline in the level of firings,” writes Peter Boockvar, chief investment officer at Bleakley Advisory Group.
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