US Jobless Claims Hit 247K; Rising AVERAGES SIGNALL LABOR Market Softing

Unadjusted clams signal seasonal mismatch Unadjusted Initial Claims Droped by 1.5% to 208,642, But The Decline was Smaller than the expectioned 5%, Implying Weaker-Tan-Usual Seasonal Hiring Activity. Compared to the Same Week in 2024, Unadjusted Initial Claims Are Up by More than 12,000. Insured Unemployment on an Unadjusted Basis Also Fell by 18.524 to 1.757 Million, Slightly Exceeding Seasonal Expectations But Still Reflection Labor Market Slack in Some Sectors.

Manufacturing Sector Drives State-Level Increases Michigan and Nebraska Posted Notable Increases in Claims (+3,259 and +1,328 respectively), attributed to Layoffs in the manufacting sector. California Also Saw An Increase of Over 1,000 New Claims. In Contrast, Texas, Massachusetts, and Illinois reported the largest week-oer-week declines in initial claims. States with the Highest Insured Unemployment Included New Jersey (2.2%), California and Washington (2.1%), and Massachusetts (1.9%), Indicating Sector-Sep.

Market Forecast: Labor Market Softning Signals Bearish Tilt The rise in initial claims and the upward Trend in the Four-Week avers-Both for Initial and Continuing Claims-Point to a Gradual Loosening of Labor Market Conditions. While Not Yet Signaling a Sharp Downturn, The Persistencnce of Elegated Claims Levels Supports A Bearish Short-Term Outlook for Labor-Sensitive Sector This year. Traders Should Monitor Incoming Jobs Data Closely for Confirmation of the TESE Trends.