U.S. Jobless Claims Tick Up, Core PCE Cools in April

U.S. initial jobless claims for the week ending May 23 came in at 215,000, slightly above the 211,000 consensus estimate. The prior week's reading was revised marginally higher, from 209,000 to 210,000, keeping the labor market picture broadly intact but nudging the data in a softer direction.

On the inflation front, the April core PCE price index — the Federal Reserve's preferred inflation gauge — rose 0.2% month-over-month, undercutting the 0.3% forecast and matching a step down from the prior 0.3% reading. On a year-over-year basis, core PCE came in at 3.3%, exactly in line with expectations and a tick above March's 3.2%.

Taken together, the data offers a mixed but mildly constructive read for rate-cut expectations: labor demand is holding up without overheating, and the monthly inflation print is softening even as the annual rate edges higher.