U.S. jobless claims fall to 187,000, below estimates

Initial jobless claims in the U.S. came in at 187,000 last week, below the estimate of 211,000. Weekly jobless claims are one indicator the Fed uses to gauge the labor market when setting interest rates. A reading above estimates can signal rising layoffs and a cooling labor market, which can support the case for a Fed rate cut. A lower-than-expected reading can signal labor-market resilience, giving the Fed room to keep rates unchanged or raise them while staying focused on curbing inflation.