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Jobless claims fall to 7-week low, but watch out. Trade wars could hurt U.S. labor market. - MarketWatch

1. Unemployment claims fell to a seven-week low, suggesting labor market stability. 2. Trump announced steep tariffs, raising concerns about economic slowdown. 3. Initial jobless claims dropped by 6,000 to 219,000 last week. 4. Continuing claims rose to 1.9 million, the highest since the pandemic. 5. Hiring may slow due to trade wars and chronic labor shortages.

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FAQ

Why Bearish?

Tariffs can lead to reduced growth and increased layoffs, impacting DJIA. Historical examples include the 1930 Smoot-Hawley Tariff that worsened the Great Depression.

How important is it?

The rise in continuing claims and tariffs signal potential economic instability affecting major industries.

Why Short Term?

Immediate effect anticipated as tariffs trigger investor concern; markets react quickly.

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