Jobless claims fall
A small landmark moment in the US economy's long recovery as jobless claims fell to their lowest level in 7 years, falling by 32,000 to 300,000.
That's the lowest initial print since May of 2007.
On a rolling 4 weekly basis, which is a less volatile reading, applications fell by 4,750 to 316,250.
Analysts tend to see these applications as a worthy proxy reading for redundancies.
This promising data follows on from the payrolls data which showed the US economy adding 192,000 jobs in March following 197,000 in February.
The unemployment rate in the US has fallen steadily in recent years to its present level of 6.7% as the economic recovery continues.
Share market reaction
As mentioned in many previous posts, after an huge run-up in share market valuations in the US, good news can now be treated as bad news, since it suggests that the Federal Reserve's stimulus will be tapered off.
The result was a sizeable sell-off, particularly for the NASDAQ which has a heavy technology stock weighting and shed some 3.10% overnight (hardly a shock after 5 years of turbo-charged gains!):
Many tech stocks are of a higher beta (volatility) than their industrial counterparts, and the market appears to be laden with risk at the moment.
Chief economist of BT Financial Chris Caton summed it up rather nicely.
It seems as though we can expect a bumpy (wild?) ride ahead for US share markets as the economy recovers and stimulus is wound back.