Weekly Jobless Claims Decline, Signaling Steady Labor Market Conditions

The number of Americans registering for unemployment benefits in the week ending May 13 declined by 22,000 to 242,000, below the expected 254,000, the U.S. Labor Department reported Thursday.

Key Takeways From Last Week's US Unemployment Claims

• Initial jobless claims came in at 242,000, declining from 264,000 the prior week, and below expectations of 254,000.
• The four-week moving average for jobless claims, which eliminates week-to-week variability, edged slightly down by 1,000 to 244,250.
• Continuing jobless claims for the week ended May 6 dropped from 1,807,000 to 1,799,000, below the expected 1,818,000.
• Noteworthy drops in jobless claims were reported in Massachusetts, down by 14,042 for the week, and Missouri, down by 2,328.

Chart: US Weekly Jobless Claims Dropped Last Week

Market Reactions: The U.S. stock market is expected to open higher on Thursday, as indicated by futures on the S&P 500, which are up 0.2% just ahead of the opening bell on Wall Street.

President Joe Biden said Wednesday the U.S. will never default on its debt, bolstering risk sentiment. The S&P 500 index is tracked by the SPDR S&P 500 ETF Trust SPY. 

Investors' expectations for a Fed rate pause in June have remained steady after the release, with 73% probability priced in, according to the CME Group's Fedwatch.

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