U.S. Jobless Claims Hit Highest Level In Weeks As CPI Expectations Surprise On The Upside

Key takeaways

• Jobless claims rose for the fourth week in a row, but continuing claims are still well under the spring peak
• Headline inflation for July came in at 3.2%, meeting analyst forecasts and primarily driven by shelter costs
• The stock markets reacted positively to both pieces of news, but the bond market was volatile due to the Treasury sell-off

The weekly unemployment benefit claims rate has hit its highest point in a month, but the data still isn’t trending in the right direction for the Fed to cool its jets on inflation. Speaking of which, the July inflation rate was a little warmer, but nothing that prompted any concerns from the markets.

It was a turbulent day for bonds for a different reason, while economists are beginning to wonder how the Fed’s monetary tightening efforts will handle upcoming headwinds that have the potential power to change the course. We’ve got the latest on what the facts and figures are, as well as how the markets fared.