Higher-Than-Expected Increase In Unemployment Claims Raises Alarm For Job Market
Portfolio Pulse from Piero Cingari
The Department of Labor reported a higher-than-expected increase in unemployment claims, raising concerns about the labor market. This marks the third consecutive week of rising initial jobless claims. Market reactions include a drop in the U.S. Dollar Index and a rise in gold prices.
June 08, 2023 | 12:50 pm
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POSITIVE IMPACT
Gold prices, tracked by the SPDR Gold Trust (GLD), soared 0.5% after the higher-than-expected unemployment claims report.
The higher-than-expected unemployment claims report raises concerns about the labor market, which positively impacts gold prices as investors seek safe-haven assets. As GLD tracks gold prices, its price is likely to go up in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Futures on the S&P 500 index, tracked by the SPDR S&P 500 ETF Trust (SPY), ticked slightly up 0.1% ahead of the opening bell after the unemployment claims report.
Despite the higher-than-expected unemployment claims report, futures on the S&P 500 index showed a slight increase. As SPY tracks the S&P 500 index, its price is likely to go up in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The U.S. Dollar Index, tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), fell 0.2% following the higher-than-expected unemployment claims report.
The higher-than-expected unemployment claims report raises concerns about the labor market, which negatively impacts the U.S. Dollar Index. As UUP tracks the U.S. Dollar Index, its price is likely to go down in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80