U.S. futures fluctuated on Thursday after data showed fewer Americans applying for unemployment benefits, likely signaling that the rate of labor market recovery is beginning to increase. .
S&P 500 futures fell 0.1 percent a day after the benchmark US stock index soared from the first record close since the coronavirus epidemic disrupted the economy. Abroad, the transcontinent Stoxx Europe 600 fell 0.6%.
Initial jobless claims fell to 963,000 in the week ending August 7, ending a 20-week streak that resulted in over 1 million. This compared with 1,186 million applications for unemployment benefits last week, shows a moderate decrease and lower than the estimate of economists of 1.1 million. However, it is also more likely that layoffs occurring nowadays are permanent, as opposed to temporary layoffs and mitigation at the start of the pandemic.
Investors worry that last month̵7;s expiration of an additional $ 600 weekly unemployment benefit could leave workers less money and reduce consumer spending, becoming a drag on the economy. practice. Sebastian Mackay, a multi-level fund manager at Invesco, said the rate of change in weekly requests is being scrutinized as an indicator of the rate of economic recovery.
“The US labor market has had a big shock and is recovering very slowly,” Mr. Mackay said. “My basic case was the decreasing initial unemployment. The direction for the economy is to recover, but it is quite slow in the labor market ”.