US Unemployment on the Rise: Stocks Decline, Gold Rises

Investing.com – The US 5,000 rose more than expected, recording last week’s 245,000 claims in the week ending April 15th.

It is now rising strongly after the data that stimulates an upcoming economic recession scenario due to the Federal Reserve.

US jobless claims continue to rise for four consecutive weeks. With the continued strength of the wave of layoffs in the American markets. In the technology market alone, nearly 250,000 people have been laid off since November 2022.

Despite this, the US unemployment rate came out better than expected during the last reading, recording 3.5%. But the Fed believes that unemployment will reach levels of 4%.

This comes in the midst of core inflation (the reading that excludes energy and food that matters to the Fed) when expected above 5% levels.

Although the market expects the Fed to raise interest rates strongly during the next meeting, the certainty now reaches 89.5% according to the Investing.com Federal Reserve Interest Rate Tracker. The Fed will raise interest rates by 25 basis points, bringing the final interest rate range between 5.00-5.25%.

Markets after the release of the data:

• Gold in instant transactions rises to the level of $ 2,007 an ounce.
• It rises to $2,019 an ounce
• The American dollar declines to the level of 101.485, a decrease of 0.18%.
• Index futures lost 186 points, and contracts lost 0.92%, the highest decline after the disappointing results of Tesla (NASDAQ:) business, and contracts fell by 0.73%.
• It decreased by 1.58%, to a price of $81.81 a barrel, while West Texas Intermediate crude oil decreased by 1.63%, to a price of $77.94 a barrel.