US jobless claims tick up ahead of September’s jobs report

Initial jobless claims for the week ending in September 28 showed more Americans filed for unemployment benefits than anticipated. The figure came in at 225,000, slightly above the estimated 221,000. This report comes ahead of September’s jobs report, which could trigger a sell-off for US markets (^DJI,^GSPC, ^IXIC) as investors grow increasingly concerned about a slowing economy.

However, Goldman Sachs remains bullish on the S&P 500. Analyst Scott Rubner’s latest note reveals that his 6,000 year-end target for the index might actually be “too low.” Rubner is bullish on US equities heading into the year end, and anticipates a rally to start on October 28. He highlights seasonal tailwinds in the market, noting that the S&P 500 tends to rally about 4% on average from October 27 through the year-end. In addition, stocks tend to advance after US presidential elections as investors rotate out of cash and into equities.

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This post was written by Melanie Riehl