US jobless claims rise more than expected

The number of Americans filing new claims for unemployment benefits rose more than expected, reinforcing signs of a weak labor market.

Data released by the US Labor Department on Thursday showed initial jobless claims rose by 11,000 to 235,000 in the week ending August 16, a two-month high. The number of claims was forecast to rise to 226,000, from the previous week's unrevised reading of 224,000.

The increase in claims was inflated by adjustments used by US statisticians to account for seasonal fluctuations in employment during the summer, but the report also showed that layoffs remain near all-time lows.

The four-week moving average of claims (the most accurate measure of labor market performance) also rose by 4,500 to 226,250, compared to the previous week's unrevised average of 221,750.

Investors expect the Fed to cut interest rates by 25 basis points (bps) at its September meeting, but they are awaiting Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium tomorrow for further evidence or clarity on monetary policy.