Weekly jobless claims rise; US Q2 economy grew slightly faster than expected
The number of people who filed for unemployment insurance for the first-time last week came in at 353,000, higher than what the markets were looking for - 345,000 new filings.
Weekly claims held around the best levels since March 2020, though they are all well above the pre-pandemic levels and show signs of flattening.
At the same time, the second estimate for Q2 GDP came in at 6.6% short of the 6.7% expected, according to data from the Commerce Department. The increase was driven by Federal Reserve’s ultra-easy monetary policy stance, keeping interest rates at historically low levels and boosting stock market prices. Moreover, the market got a lift from vaccinations, which fueled demand for services such as air travel, hotel accommodation, dining out, and entertainment.
Despite concerns over sharply rising cases of Delta COVID-19 variant, these two reports paint a picture of a growing economy through the pandemic.
Markets barely reacted to the news, with stock futures indicating a primarily flat open on Wall Street.
Sources: cnbc.com, forexfactory.com