Stock Market Update

The S&P 500 futures are up 57 points and are trading 1.0% above fair value, the Nasdaq 100 futures are up 318 points and are trading 1.6% above fair value, and the Dow Jones Industrial Average futures are up 215 points and are trading 0.5% above fair value.

Initial jobless claims for the week ending April 26 increased by 18,000 to 241,000 (Briefing.com consensus 225,000), driven by a surprisingly large (and unexplained) jump in claims in New York, while continuing jobless claims for the week ending April 19 increased by 83,000 to 1.916 million, which is the highest level since November 13, 2021.

The key takeaway from the report is that the relatively large jump in both initial and continuing jobless claims will stoke concerns about a softening labor market, which in turn might elevate the market's thinking that the Fed can be convinced that it needs to be less restrictive with its policy stance.