Unexpected rise in unemployment claims

The Delta variant takes a toll on the job market

Initial unemployment claims rose again last week, revealing 362,000 filings, as hiring appeared to remain sluggish while the country continues to fight against the Delta variant, surprising analysts, who were looking for 333,000 new filings. It is the third consecutive week when new jobless claims increase.

The jump in claims was caused mainly by the numbers reported in California – 24,221. Earlier this month, the state implemented a program in which those cut off from enhanced aid could file for another week of benefits.

In a separate report from the US Commerce Department, the gross domestic product for the second quarter rose 6.7%. The latest reading was slightly higher than the 6.6% estimated.

Markets barely reacted to the news, with stock indices pointing to a higher opening and government bond yields around flat. USA30 is trading 0.10% higher, while USA500 is up 0.30%.

Sources: cnbc.com, forexfactory.com