WASHINGTON (AP) — The number of Americans filing for jobless aid rose last week but remains historically low despite the economic uncertainty caused by the war in Iran.
U.S. applications for unemployment benefits for the the week ending May 9 rose by 12,000 to 211,000, the Labor Department reported Thursday. That’s slightly more than the 207,000 new applications analysts surveyed by the data firm FactSet had forecast.
Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market.
Despite relatively few layoffs, the labor market appears to be stuck in what economists call a “low-hire, low-fire” state. That has kept the unemployment rate low at 4.3%, but left many of those out of work struggling to find new employment.
Though U.S. employers delivered a surprising 115,000 new jobs in April, the Iran war has injected a large degree of uncertainty about the broader U.S. economy and labor market.
The Strait of Hormuz, where one-fifth of the world’s oil travels through, remains closed. Since the beginning of the war in late February, oil prices have spiked more than 50% and the average price for a gallon of gas in the U.S. has climbed to $4.53 from less than $3. Besides hitting consumers’ pocketbooks, those higher costs can discourage businesses from hiring.
Data from the U.S. government this week revealed that inflation at the consumer level rose 3.8% from April 2025, the biggest jump in three years. Food prices are also up, but may not yet fully reflect rising energy costs due to the Iran war, analysts say.
Another report this week showed that wholesale prices shot up 6% from a year ago, the highest point in more than three years. The Labor Department’s producer price index — which tracks inflation before it hits consumers — shot up 1.4% from March to April, the biggest monthly gain in more than four years.
This comes at a time when U.S. inflation is already above the Federal Reserve’s 2% goal. Two weeks ago, the Fed opted to leave its benchmark rate alone, citing economic uncertainty caused by instability in the Middle East and still-elevated inflation.
Lower interest rates can boost the economy and hiring, but also tend to stoke inflation, leading a number of Federal Reserve policymakers to say they are willing to consider an interest rate hike this year.
On top of that, the recent artificial intelligence boom and the investment required to develop it could alter or even replace some jobs.
A number of high-profile companies have cut jobs recently, including Verizon, UPS, Amazon, Disney and Walmart.
Weekly jobless aid applications have stabilized in a range mostly between 200,000 and 250,000 since the U.S. economy emerged from the pandemic recession. However, hiring began slowing about two years ago and tapered further in 2025 due to President Donald Trump’s erratic tariff rollouts, his purge of the federal workforce and the lingering effects of high interest rates meant to control inflation.
Employers added fewer than 200,000 jobs last year, compared with about 1.5 million in 2024, according to the data firm FactSet.
The Labor Department's report Thursday showed that the four-week moving average of jobless claims, which evens out some of the week-to-week gyrations, inched up by 750 to 203,750.
The total number of Americans filing for unemployment benefits for the previous week ending May 2 jumped by 24,000 to 1.78 million, in line with analyst forecasts.
FILE - A person waits in a line for a prospective employer at a job fair, Aug. 29, 2024, in Sunrise, Fla. (AP Photo/Lynne Sladky, File)
NEW YORK (AP) — The U.S. stock market is rising toward more records Thursday after Cisco Systems joined the parade of U.S. companies reporting fatter profits for the start of 2026 than analysts expected.
The S&P 500 added 0.9% to its all-time high set the day before. The Dow Jones Industrial Average climbed 386 points, or 0.8%, and is on track to finish a day above the 50,000 level for the first time since the war with Iran began. The Nasdaq composite was 1% higher and adding to its own record, as of 11:45 a.m. Eastern time.
Cisco helped lead the market after jumping 15.5% in what could be its best day in nearly 15 years. The tech giant reported better profit and revenue for the latest quarter than analysts expected, and CEO Chuck Robbins said it saw “very strong, broad-based demand for our products.”
Big Tech behemoths in particular are pouring cash into artificial-intelligence technology, and Cisco gave a forecast for profit in the current quarter that easily topped analysts' expectations.
Such voracious demand for AI, and the big profits it's producing, have been major reasons the U.S. stock market has set records throughout this year. Cerebras Systems, an AI processor company, raised $5.55 billion after selling its stock in an initial public offering, and its shares are set to begin trading on the Nasdaq later in the day.
Corporate earnings reported so far this season have “reinforced that this is still an AI-led market, but one where the impact is broadening quickly,” according to Gargi Pal Chaudhuri, chief investment and portfolio strategist at BlackRock.
“What started with a handful of companies is now driving earnings growth across semiconductors, infrastructure, and even parts of the industrial economy,” she said.
Outside of AI, other stocks rallying after delivering better-than-expected profit reports included StubHub Holdings, up 18.2%, Viking Holdings, up 7% and Yeti Holdings, up 4.7%.
All three companies sell products that aren’t day-to-day essentials, such as concert tickets, river cruises and insulated water bottles. Strong results from them could be an indicator that customers are still willing to spend even though U.S. consumers have been telling surveys they're feeling discouraged about the economy.
Whether U.S. households will keep spending and support the economy is a big question because pressure has been rising on them due to high oil prices and inflation created by the Iran war. A report released Thursday said that shoppers overall spent less at U.S. retailers last month than economists expected. But the deceleration after factoring out gasoline and automobile sales wasn’t quite as bad as economists thought it would be.
A separate report, meanwhile, said more U.S. workers filed for unemployment benefits last week, which could be an indication of more layoffs. The number, though, remains relatively low compared with history.
Treasury yields flitted up and down in the bond market immediately after the reports, but they largely remained steady. The yield on the 10-year Treasury edged down to 4.45% from 4.46% late Wednesday.
In stock markets abroad, indexes rose in Europe following a mixed finish in Asia. Japan's Nikkei 225 fell 1%, while South Korea's Kospi jumped 1.8% to another record thanks to gains for AI-related stocks.
Stocks were nearly flat in Hong Kong and down 1.5% in Shanghai as Chinese leader Xi Jinping met with U.S. President Donald Trump in Beijing.
Some investors hope Trump could encourage Xi to use China’s close economic ties with Iran to get it to reopen the Strait of Hormuz. The strait’s closure because of the war has kept oil tankers pent up in the Persian Gulf instead of delivering crude to customers worldwide, which has driven up crude prices.
The price for a barrel of Brent crude oil, the international standard, fell 0.6% to $104.97 Thursday, but it remains well above its price of roughly $70 from before the war.
AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
Trader Michael Capolino works on the floor of the New York Stock Exchange, Wednesday, May 13, 2026. (AP Photo/Richard Drew)
Trader Patrick Casey works on the floor of the New York Stock Exchange, Wednesday, May 13, 2026. (AP Photo/Richard Drew)
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 14, 2026. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 14, 2026. (AP Photo/Ahn Young-joon)
U.S. President Donald Trump, right, and Chinese President Xi Jinping attend a welcome ceremony at the Great Hall of the People in Beijing, Thursday, May 14, 2026. (Maxim Shemetov/Pool Photo via AP)
Asia markets index of Japan, South Korea and Australia is seen on a screen at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 14, 2026. (AP Photo/Ahn Young-joon)
