US weekly jobless claims rose moderately during last week of September

U.S. initial unemployment claims marginally increased to 224,269 for the week ended September 27, according to Haver Analytics, signaling continued low layoffs but stalled hiring. The ongoing government shutdown has suspended official data releases, delaying the crucial September employment report and complicating Federal Reserve decision-making, while continued claims also rose to 1.921 million, reflecting longer unemployment durations in a stagnant labor market.

Analysis

AMD shares surge after AI chip deal with OpenAI WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits increased marginally during the last week of September, data from Haver Analytics showed, pointing to a still low level of layoffs even as hiring has stalled. Initial claims for state unemployment benefits increased to a seasonally adjusted 224,269 for the week ended September 27 from 218,589 in the prior week, Haver Analytics calculated. Official data collection and publication has been suspended because of a government shutdown, now in its sixth day. But states have continued to collect unemployment claims data and submit it to Labor Department’s database, which remains accessible. The shutdown following a lapse in funding has delayed the release of the closely watched employment report for September, crucial for decision-making by officials at the Federal Reserve, businesses and households. The labor market has stagnated with businesses not firing employees on a large scale, but also reluctant to hire more workers. Economists have blamed the labor market paralysis on President Donald Trump’s trade and immigration policies as well as the growing popularity of artificial intelligence, which have combined to reduce demand and labor supply. Government data last week showed there were 0.98 job openings for every unemployed person in August compared to 1.0 in July. With hiring sluggish, more people are experiencing long spells of unemployment and remaining on benefits for longer. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased to 1.921 million during the week ending September 20, from 1.916 million in the prior week, Haver Analytics estimated. Which stock should you buy in your very next trade? AI computing powers are changing the stock market. Investing.com's ProPicks AI includes dozens of winning stock portfolios chosen by our advanced AI. Year to date, 3 out of 4 global portfolios are beating their benchmark indexes, with 98% in the green. Our flagship Tech Titans strategy doubled the S&P 500 within 18 months, including notable winners like Super Micro Computer (+185%) and AppLovin (+157%). Which stock will be the next to soar? The U.S. labor market is exhibiting signs of stagnation, with private data from Haver Analytics indicating a marginal increase in initial unemployment claims to 224,269 for the week ending September 27. More significantly, the number of people receiving benefits after an initial week rose to 1.921 million, suggesting longer durations of unemployment and sluggish hiring. This situation is compounded by a government shutdown that has suspended the release of official data, including the crucial September employment report, thereby increasing uncertainty for Federal Reserve monetary policy decisions. The article attributes this labor market paralysis to a confluence of factors, including restrictive trade and immigration policies and the growing adoption of artificial intelligence. It is critical to note that despite a headline mentioning a deal involving AMD and the inclusion of tickers like SMCI and APP, the body of the article provides no factual reporting on these companies; their mention is confined to a promotional segment for an investment product and is disconnected from the primary macroeconomic analysis.

Key Decisions for Investors

• Investors should exercise caution due to the combination of a weakening labor market, policy uncertainty from the government shutdown, and the Federal Reserve's impaired ability to make data-driven decisions.
• Positions in AMD, SMCI, and APP should be evaluated based on fundamental analysis independent of this article, as the provided text contains no verifiable news to support the ticker-specific sentiment signals or the headline claim.
• Monitor for alternative economic data points and any forward guidance from Federal Reserve officials on how they are navigating the lack of official employment statistics.
• Consider the potential for increased market volatility until the government shutdown is resolved and key economic reports, such as the official employment data, are released.