Dow adds 500 points after latest jobless data brings better news for America’s labor market

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First-time claims for unemployment benefits fell last week, putting some of the worst recession fears on hiatus and fueling market optimism after Monday’s global rout.

Initial claims fell to 233,000 from the prior week’s upwardly revised 250,000, according to Department of Labor data released Thursday. “Anything in that range tends to suggest a fairly healthy labor market,” wrote economist Joseph Brusuelas on X Thursday morning. Economists had expected 240,000 initial claims for unemployment insurance for the week ending August 3.

The latest snapshot of the US labor market comes as Wall Street attempts to bounce back from a market plunge triggered by a weaker-than-expected July jobs report that showed unemployment rose to 4.3% from 4.1% and the economy added just 114,000 jobs. Concern that the US economy is slowing down more quickly than expected fueled losses on all three major US indexes on Monday, with the Dow at one point down by more than 2.6%.

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