Initial jobless claims fell back last week, easing concerns sparked by a recent spike to a nine-week high, according to the latest data from the Department of Labor.
- Claims dropped to 228,000 for the week ending May 3, down from 241,000 the previous week, marking the second-highest level in the past ten weeks.
- Continuing claims also improved, declining to 1.88 million for the week ending April 26, down from 1.92 million the prior week.
Despite the dip, the overall level of claims remains slightly elevated, suggesting some ongoing moderation in the labor market.
Consumer Sentiment: Adding to the positivity, the University of Michigan’s preliminary reading on consumer sentiment for May came in slightly better than expected, rising to 53 from April’s 52.2. Economists had anticipated a drop to 52, but instead, sentiment ticked higher—offering a modest sign of resilience among consumers despite ongoing economic uncertainty.
Rate Impact: The economy is performing slightly better than expected, and that’s triggering a bond market sell-off, pushing yields—and consequently interest rates—higher.
