America’s Jobless Claims at Highest Point for the Year
US unemployment claims are up higher than expected, and analysts blame the weather and the Boeing strike.
Jobless claims are up last week higher than they have been all year, according to a report from the US Labor Department. The biggest culprit is the hurricane season.
Over the last few months, the US has been repeatedly hit by powerful hurricanes, including Helene and now Milton. These hurricanes have affected Tennessee, Florida, North Carolina, and South Carolina. Milton has yet to register with the weekly unemployment claims, but we expect it will have an impact on the next report, as the hurricane has been causing massive property damage and even loss of life.
Also affecting jobless claims recently is the Boeing strike, which has been going on for weeks and may continue for the long haul. This strike has affected about 33,000 workers.
Unemployment claims are up to 258,000 for the week of October 3rd, which is an increase of 33,000. Analysts anticipated an increase to 229,000, but this is much higher than that. The last time we saw such numbers was all the way back in August of last year.
Unemployment Claims and the Stock Market
We expect jobless claims to increase next week as well as the hurricane season continues. The market has remained low recently because of increasing conflict in the Middle East, but the new jobless claims report is likely to make things even worse.
The Dow Jones is down 0.14%, and the S&P 500 dropped 0.21%. Additionally, the Nasdaq Composite is down 0.05% compared to yesterday. As the report is processed and the market opens, we fully expect the stock markets to dip today, ending the week on a sour note.
While the US economy is recovering in some ways, the short term outlook is poor and will keep the market down for the moment.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals