Weekly Unemployment Claims Decline More Than Expected, Cool Recession Concerns: Stocks Rebound
Portfolio Pulse from Piero Cingari
Weekly unemployment claims in the U.S. fell more than expected, easing recession concerns and leading to a rebound in stock futures. Initial claims dropped to 233,000, below the forecasted 240,000, while continuing claims slightly increased. The national unemployment rate rose to 4.3%, sparking expectations for Federal Reserve rate cuts. The S&P 500, tracked by SPDR S&P 500 ETF Trust (SPY), declined 0.7% on Wednesday but futures were up in premarket trading on Thursday.
August 08, 2024 | 12:46 pm
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The SPDR S&P 500 ETF Trust (SPY) saw a decline of 0.7% on Wednesday but is expected to rebound as futures are up 0.8% in premarket trading following better-than-expected unemployment claims data.
The decline in weekly jobless claims below expectations has eased recession fears, leading to a positive sentiment in the stock market. This is reflected in the premarket rise in S&P 500 futures, which suggests a potential rebound for SPY.
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