US initial jobless claims increased by 13,000 to 225,000 for the week ended May 30, reaching their highest level since February according to the latest Labor Department data. The figure came in above economist forecasts of around 213,000, with the four-week moving average edging up to 214,750. According to Bloomberg, the latest reading may have been influenced by seasonal distortions linked to the Memorial Day holiday and the start of summer breaks in some school districts. While the increase points to some moderation in labour market conditions, weekly claims have largely stayed within a range of 190,000 to 230,000 despite announcements of workforce reductions by several technology companies amid the growing adoption of artificial intelligence. Continuing claims, which reflect the number of people receiving unemployment benefits after an initial week of aid, fell by 8,000 to 1.777 million in the week ended May 23, suggesting workers who lose jobs are still finding opportunities in a relatively stable employment market.
US job openings rose sharply to 7.62 million in April, the highest level in nearly two years, according to the latest Bureau of Labour Statistics data. The figure increased from 6.89 million in March and came in above the median estimate of 6.87 million in a Bloomberg survey of economists. Most of the increase was concentrated in the professional and business services sector, which accounted for nearly the entire rise in job vacancies. During the month, total hires declined to 5.12 million, partly reversing a surge recorded in March, while layoffs fell to 1.69 million, indicating a moderation in job cuts compared with the previous month. The data points to labour demand stabilising after near-zero job growth in 2025, even as job openings remain below pandemic-era highs.
Japan and South Korea stock markets hit fresh record highs on Monday, extending the global equity rally that has seen the S&P 500 climb to another record high on Friday, closing at 7,580.05. According to The Associated Press and Bloomberg via SWI, the rally has been driven by investor enthusiasm around the artificial intelligence boom and broader risk appetite. The MSCI All Country World Index advanced 0.2% while Asian shares climbed 1% to an all-time high, demonstrating the widespread nature of the current market momentum across global markets.
US equity markets extended their winning streak to close out Friday, the week and the month at fresh record highs. The Nasdaq 100 gained 2.89% for the week and a remarkable 10.49% for May, building on its blistering 15% surge in April. The S&P 500 added 1.43% last week to cap off a robust 5.15% monthly advance, while the Dow Jones chipped in with a solid 452-point gain (+0.89%) for the week and 1384 points (+2.79%) for the month. As reported by Investing.com India, the rally was largely underpinned by growing optimism surrounding a potential 60-day ceasefire extension between the US and Iran, a move that would pave the way to reopening the Strait of Hormuz.
The Federal Reserve's Beige Book released on Wednesday noted that employment activity saw "little to no change" in May, with most regions describing hiring and firing activity as subdued. The report echoed recent labour market releases that have pointed to slower hiring rather than a sharp deterioration. The stability in job vacancies adds to debate over the timing of potential interest rate cuts by the Federal Reserve, as market expectations around monetary policy are influenced by the labour market data. Economists surveyed by Reuters expect nonfarm payrolls to have increased by 85,000 jobs in May, compared with 115,000 jobs added in April, while the unemployment rate is projected to hold steady at 4.3%. Recent jobless claims data have shown few signs of widespread layoffs despite some high-profile announcements of job cuts, including from Meta Platforms Inc., Starbucks Corp., LinkedIn and Walmart Inc.
Separate data from Challenger, Gray & Christmas showed US employers announced 97,006 job cuts in May, an increase of 16% from April. The technology sector accounted for nearly 39% of the announced layoffs, though planned job cuts were only modestly higher than levels recorded during the same period last year. The latest claims figures do not factor into Friday's closely watched May employment report because they fall outside the survey period. With earnings season largely in the rearview mirror, market attention will now pivot to this week's crucial jobs data and the roadshow for the highly anticipated SpaceX initial public offering (IPO). SpaceX is now targeting at least $1.8 trillion for the IPO, a slight adjustment from the previously reported $2 trillion figure, with the blockbuster debut set to launch on 12 June.
From its late-March low of 22,841, the Nasdaq 100 has staged an incredible rally, surging 33% in just nine weeks to hit a high of 30,470 on Friday. Following the latest leg higher from the 19 May low of 28,567, clear bearish relative strength index (RSI) divergence has now emerged, signaling that upward momentum is fading. While this signals that chasing the rally or giving in to fear of missing out (FOMO) at current levels is becoming increasingly risky, it doesn't necessarily mean a sharp reversal is imminent. The Dow Jones has rallied more than 13% to reach Friday's high of 51,099, unlike the Nasdaq 100 and S&P 500, the Dow is not showing bearish RSI divergence, suggesting it has the potential to extend its gains provided it holds above the 50,000 psychological level.
