Following two consecutive lower closes, the S&P 500 (SPX) is set to open Thursday’s trading session higher following the release of new labor market data.
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For the week ended January 9, initial jobless claims fell by 9,000 to 198,000, below the consensus estimate of 215,000. Continuing jobless claims, which trail initial claims by a week, decreased by 19,000 to 1.884 million, also below the expectation of 1.897 million.
Low Claims Data Ease Labor Market Concerns
Initial jobless claims serve as a gauge of layoffs, while continuing jobless claims track the number of people receiving unemployment benefits, reflecting ongoing unemployment.
Chicago Federal Reserve President Austan Goolsbee told CNBC he was not surprised by the low claims data and that inflation poses a greater risk than the labor market. He added that the central bank must receive evidence of inflation retreating to the 2% level before interest rates can come down. The Fed is set to meet for its first Federal Open Market Committee (FOMC) meeting of the year on January 28.
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