US initial jobless claims rose to a level of 199,000 in the week ended Aug. 1 from an upwardly revised 198,000 level in the previous week, compared with expectations for a larger increase to 205,000 in survey of analysts compiled by Bloomberg as of 7:30 am ET.
The four-week moving average fell by 4,500 to 198,750 after decreasing by 4,750 to a level of 203,250 in the previous week, the lowest since the week ended Oct. 1, 2022.
Insured jobless claims jumped by 24,000 to 1,801,000 in the week ended July 25.
The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.
A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.