Another economic report stole the consumer price index’s thunder, with investors focusing more on a jump in jobless claims than the latest inflation figures. Initial jobless claims for the week ended Sept. 6 jumped by 27,000 from the prior period to 263,000. That exceeded a Dow Jones estimate of 235,000 and was the highest reading since late 2021. The report pointing to further signs of a slowing labor market overshadowed the Labor Department’s CPI report, which was in line with expectations except for the headline month-over-month change . “Today’s CPI report has been trumped by the jobless claims report,” said Seema Shah, chief global strategist at Principal Asset Management. “While the CPI report is a tad hotter than expected, it will not give the Fed a moment of hesitation when they announce a rate cut next week. If anything, the jump in jobless claims will inject a bit more urgency in the Fed’s decision making, with Powell likely signaling a sequence of rate cuts is on the way.” Indeed, at least a quarter percentage-point rate cut next week from the Federal Reserve is guaranteed, based on where interest rate futures are trading. The CME Group’s FedWatch tool also showed a slight uptick in expectations for a half-point rate reduction. The 10-year Treasury note yield briefly dipped below the key 4% level Thursday, the lowest since April, before snapping back later. “This dynamic illustrates the Fed’s focus on the ‘maximum employment’ half of the dual mandate, with today’s inflation print not hot enough in our view to derail a 25 bps interest rate cuts at next week’s FOMC meeting,” said Josh Jamner, senior investment strategy analyst at ClearBridge Investments. That may be the reason equity futures are mostly holding up. S & P 500 futures were up 0.2% minutes ahead of the 9:30 a.m. open, while Dow Jones Industrial Average and Nasdaq-100 futures were also higher. And while sticky inflation should concern the Fed, former Goldman Sachs CEO Lloyd Blankfein warned how dangerous it’d be for the central bank to focus too much on inflationary pressures. “The consequences of incremental inflation versus a dropoff in growth and employment, you know, it’s not the same consequence. I think the drop off in employment will be felt much more radically and have, you know, bigger consequences in the immediacy to the country,” Blankfein said on CNBC’s ” Squawk Box .” — CNBC’s Alex Harring and Michelle Fox contributed reporting. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
Most important economic report of the day turned out to not be CPI
