US jobless claims 231,000 in Sept. 13 week; est. 240K

US jobless claims 231,000 in Sept. 13 week; est. 240K

U.S. initial jobless claims surged to 263,000 in the week ending September 6, marking the highest level since October 2021 . This figure is well above the expected 240,000, indicating a softening trend in labor market conditions. The four-week moving average of initial claims rose by 10,000 to 241,000, further underscoring the cooling labor market .

Continuing claims, which represent the number of people receiving unemployment benefits, remained steady at 1.939 million for the week ending August 30, with the four-week average dropping slightly to 1.936 million . Despite this stability, the rise in new claims adds pressure on the Federal Reserve as it considers the pace of policy easing .

The U.S. August Consumer Price Index (CPI) increased by 2.9% year-over-year, matching expectations . The European Central Bank (ECB) left key interest rates unchanged in its September monetary policy meeting, as anticipated . The ECB also nudged up its 2025 and 2026 inflation forecasts while trimming the 2027 forecast .

Market reactions were mixed. The euro gained against the U.S. dollar, but the Australian dollar led the pack, breaking through July highs to the best levels since November 2024 . The U.S. 10-year yields briefly touched below 4% for the first time since Liberation Day, leading to a broader equity market rally .

The U.S. federal budget deficit for August was $345.0 billion, exceeding the expected $285.5 billion . Tesla shares broke the summer high and rose to the best level since February . The U.S. Treasury auctioned off $22 billion of 30-year bonds at a high yield of 4.651% .

In summary, the surge in initial jobless claims highlights a cooling labor market, adding to the Fed's considerations for policy easing. The CPI data and ECB's monetary policy decisions also influenced market reactions, with mixed results across different asset classes.