US jobless claims drop to 218K as GDP hits 3.8%, topping forecasts

Jobless claims in the U.S. dropped to 218,000 for the week ending September 20, according to the Labor Department’s release on Thursday.

That number is 14,000 fewer than last week’s total, which had already been revised higher. Reuters analysts had expected 235,000 claims.

S&P 500 futures fell some more Thursday after the report, bogged down by a further pullback in Nvidia and Oracle, as investors weighed the latest unemployment data.

Futures linked to the broad market index traded lower by 0.5%, while Nasdaq-100 futures slipped 0.7%. Futures tied to the Dow Jones Industrial Average dropped 110 points, or 0.2%.

Fed cuts rates while employers avoid layoffs

This data is dropping just days after the Federal Reserve lowered interest rates by 0.25 percentage points, putting the federal funds rate in a range of 4% to 4.25%, as Cryptopolitan previously reported.

The US central bank said in its post-meeting statement that the decision was made because “downside risks to employment have risen.” This was the first time in 2026 the Fed made such a move. It followed signs that nonfarm payroll growth has slowed, and job openings are sitting at a multi-year low.

Meanwhile the Labor Department also reported continued jobless claims dropped by 2,000, reaching 1.926 million. This figure lags behind the initial claims by a week, but it still gives a picture of how many people are staying on unemployment.

While hiring has slowed down, companies still aren’t cutting staff in big numbers. Earlier this month, claims had jumped a bit, but this latest data shows most employers are choosing not to lay off workers even as job growth weakens. The data suggests businesses are cautious but not panicking, possibly holding off on hiring without rushing to fire.

That hesitation is likely part of what the Fed saw when it made the rate cut. The market had started raising concerns that the labor situation was cracking. But with this week’s numbers, those worries may cool, at least temporarily.

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