SP500 Gains Ground as Jobless Claims Align with Analyst Expectations

Key Insights

• Initial Jobless Claims grew from 229,000 to 242,000. 
• Continuing Jobless Claims decreased from 1.84 million to 1.81 million. 
• The Balance of Trade was -$64.2 billion in March.

Initial Jobless Claims Were Mostly In Line With Analyst Expectations

On May 4, U.S. released Initial Jobless Claims report, which indicated that 242,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 240,000. Continuing Jobless Claims declined from 1.84 million to 1.81 million.

Traders also had a chance to take a look at the Balance of Trade for March, which showed that imports outpaced exports by $64.2 billion. Analysts expected a Balance of Trade of $-63.3 billion. The negative Balance of Trade has been the  norm for the U.S. for decades. From a big picture point of view, the Balance of Trade continues to normalize after a huge dip at the first half of 2022.

Treasury yields have started to move higher after the release of the reports, but it remains to be seen whether this rebound will be sustainable.

Gold Pulls Back As Dollar Rebounds

SP500 gained some ground in the premarket trading session after the release of the Initial Jobless Claims data. Today, traders will continue to digest yesterday’s comments from Fed Chair Jerome Powell.

U.S. Dollar Index is trying to settle back above the 101.50 level as Treasury yields rebound. U.S. Dollar Index has found strong support near the 101 level, and it will need material catalysts to settle below this level.

Gold pulled back below the $2040 level as traders reacted to rising Treasury yields and stronger dollar. The release of the economic reports did not have a material impact on gold markets as traders remained focused on Fed policy outlook.

For a look at all of today’s economic events, check out our economic calendar.