REUTERS
"Fed's Hammack voices concern about 'inflationary mindset' taking hold"
By Reuters
May 7, 2026
WASHINGTON, May 7 (Reuters) - Federal Reserve Bank of Cleveland President Beth Hammack said on Thursday that she hears concerns from businesses that an inflationary mindset is starting to become entrenched and needs to keep an open mind about the Fed's next policy move.
Hammack, who dissented at the Fed's most recent meeting on its decision to maintain language implying that its next move would be a rate cut, said that a series of temporary price shocks, from COVID-19 to Russia's invasion of Ukraine and the current Iran war, has kept the Fed from reaching its 2% inflation target for more than five years.
"What I hear when I'm out with businesses is I hear concern that an inflationary mindset is starting to become entrenched in people's minds," Hammack told the Ohio CEO Summit in Columbus.
"I hear about the pain of inflation when I'm out talking to individuals."
Reporting by David Lawder; Editing by Chizu Nomiyama
https://www.reuters.com/business/feds-h ... 026-05-07/
THE DAILY NEWS
Re: THE DAILY NEWS
REUTERS
"US labor market stable as layoffs remain low"
By Lucia Mutikani
May 7, 2026
Summary
* Weekly jobless claims increase 10,000 to 200,000
* Continuing claims decrease to lowest level since January 2024
WASHINGTON, May 7 (Reuters) - The number of Americans filing claims for unemployment benefits rose moderately last week amid low layoffs, underscoring labor market stability and strengthening financial market expectations that the Federal Reserve will not cut interest rates this year.
The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy's health, continued to show no clear signs of labor market stress from an oil price shock triggered by the U.S.-Israel war with Iran.
Fewer people were collecting unemployment checks towards the end of April, though that drop could be the result of some people exhausting their eligibility, which is limited to 26 weeks in most states.
Low levels of layoffs are anchoring the labor market.
Economists remain wary of downside risks because of the war's disruption of oil shipments through the Strait of Hormuz.
"Fed officials cut interest rates last year because of worries over joblessness and a higher unemployment rate, but right now, there is no reason to consider interest rate cuts whatsoever because the labor market is steady as a rock," said Christopher Rupkey, chief economist at FWDBONDS.
Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 200,000 for the week ended May 2, the Labor Department said.
Economists polled by Reuters had forecast 205,000 claims for the latest week.
The increase partially unwound the prior week's decline, which had pushed claims to a level last seen in 1969.
Government data on Tuesday showed there were 0.95 job openings for every unemployed person in March versus 0.91 in February, consistent with a stable labor market.
Despite a raft of layoff announcements by big technology firms related to the adoption of artificial intelligence for some job roles, claims have remained below the 230,000 level this year.
Economists speculate that laid-off technology workers are most likely receiving generous severance packages.
A report from global outplacement firm Challenger, Gray and Christmas on Thursday showed U.S.-based employers announced 83,387 job cuts in April, up 38% from March.
The tally was, however, down 21% from last year.
LAYOFFS TRENDING LOWER
Employers have so far this year announced 300,749 job cuts, down 50% from the same period in 2025.
Technology companies have accounted for the bulk of the layoffs, with AI often cited as the reason.
The U.S. central bank last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing inflation worries.
Financial markets expect the Fed to keep rates steady into 2027.
U.S. stocks were largely flat in early trading.
The dollar slipped against a basket of currencies.
U.S. Treasury yields fell.
The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, decreased 10,000 to a seasonally adjusted 1.766 million during the week ended April 25, the lowest level since January 2024, the claims report showed.
The data have no bearing on the employment report for April, which is due to be released on Friday.
Nonfarm payrolls likely increased by 62,000 jobs last month after rebounding by 178,000 in March, a Reuters survey of economists predicted.
The anticipated slowdown will reflect the fading boost from warmer weather and the return of striking health workers.
The expected pace of job growth would be above what economists say is now needed to keep up with growth in the working-age population.
Estimates for the so-called break-even rate are between zero and 50,000 jobs per month.
The unemployment rate is forecast to have been unchanged at 4.3% in April, with a possibility of being rounded down to 4.2%.
The Chicago Fed is forecasting the jobless rate to be 4.23%, which would round down to 4.2%.
A separate report from the Labor Department's Bureau of Labor Statistics showed nonfarm productivity, which measures hourly output per worker, increased at a 0.8% annualized rate in the first quarter after rising at a 1.6% rate in the October-December quarter.
Worker productivity, however, increased at a 2.9% pace from a year ago.
Heavy spending on AI has ignited a debate over its impact on productivity.
"The question is whether productivity has accelerated because of AI and/or other technological advances, which would be expected to continue, or because firms were simply holding off on hiring last year due to policy-related uncertainty and making do with lower headcounts, which also shows up as a productivity acceleration but is not sustainable long-term," said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/business/world- ... 026-05-07/
"US labor market stable as layoffs remain low"
By Lucia Mutikani
May 7, 2026
Summary
* Weekly jobless claims increase 10,000 to 200,000
* Continuing claims decrease to lowest level since January 2024
WASHINGTON, May 7 (Reuters) - The number of Americans filing claims for unemployment benefits rose moderately last week amid low layoffs, underscoring labor market stability and strengthening financial market expectations that the Federal Reserve will not cut interest rates this year.
The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy's health, continued to show no clear signs of labor market stress from an oil price shock triggered by the U.S.-Israel war with Iran.
Fewer people were collecting unemployment checks towards the end of April, though that drop could be the result of some people exhausting their eligibility, which is limited to 26 weeks in most states.
Low levels of layoffs are anchoring the labor market.
Economists remain wary of downside risks because of the war's disruption of oil shipments through the Strait of Hormuz.
"Fed officials cut interest rates last year because of worries over joblessness and a higher unemployment rate, but right now, there is no reason to consider interest rate cuts whatsoever because the labor market is steady as a rock," said Christopher Rupkey, chief economist at FWDBONDS.
Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 200,000 for the week ended May 2, the Labor Department said.
Economists polled by Reuters had forecast 205,000 claims for the latest week.
The increase partially unwound the prior week's decline, which had pushed claims to a level last seen in 1969.
Government data on Tuesday showed there were 0.95 job openings for every unemployed person in March versus 0.91 in February, consistent with a stable labor market.
Despite a raft of layoff announcements by big technology firms related to the adoption of artificial intelligence for some job roles, claims have remained below the 230,000 level this year.
Economists speculate that laid-off technology workers are most likely receiving generous severance packages.
A report from global outplacement firm Challenger, Gray and Christmas on Thursday showed U.S.-based employers announced 83,387 job cuts in April, up 38% from March.
The tally was, however, down 21% from last year.
LAYOFFS TRENDING LOWER
Employers have so far this year announced 300,749 job cuts, down 50% from the same period in 2025.
Technology companies have accounted for the bulk of the layoffs, with AI often cited as the reason.
The U.S. central bank last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing inflation worries.
Financial markets expect the Fed to keep rates steady into 2027.
U.S. stocks were largely flat in early trading.
The dollar slipped against a basket of currencies.
U.S. Treasury yields fell.
The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, decreased 10,000 to a seasonally adjusted 1.766 million during the week ended April 25, the lowest level since January 2024, the claims report showed.
The data have no bearing on the employment report for April, which is due to be released on Friday.
Nonfarm payrolls likely increased by 62,000 jobs last month after rebounding by 178,000 in March, a Reuters survey of economists predicted.
The anticipated slowdown will reflect the fading boost from warmer weather and the return of striking health workers.
The expected pace of job growth would be above what economists say is now needed to keep up with growth in the working-age population.
Estimates for the so-called break-even rate are between zero and 50,000 jobs per month.
The unemployment rate is forecast to have been unchanged at 4.3% in April, with a possibility of being rounded down to 4.2%.
The Chicago Fed is forecasting the jobless rate to be 4.23%, which would round down to 4.2%.
A separate report from the Labor Department's Bureau of Labor Statistics showed nonfarm productivity, which measures hourly output per worker, increased at a 0.8% annualized rate in the first quarter after rising at a 1.6% rate in the October-December quarter.
Worker productivity, however, increased at a 2.9% pace from a year ago.
Heavy spending on AI has ignited a debate over its impact on productivity.
"The question is whether productivity has accelerated because of AI and/or other technological advances, which would be expected to continue, or because firms were simply holding off on hiring last year due to policy-related uncertainty and making do with lower headcounts, which also shows up as a productivity acceleration but is not sustainable long-term," said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/business/world- ... 026-05-07/
Re: THE DAILY NEWS
IS MAGA TRUMPER JOHNNY WILLIAMS OF THE NEW YORK FED, WHOSE CREDIBILITY WAS SQUANDERED LONG AGO, RIGGING HIS INFLATION SURVEYS AND FEEDING US CRAP?
SEEMS SO TO ME ...
REUTERS
"NY Fed finds stability in longer-run inflation views in April"
By Michael S. Derby
May 7, 2026
Summary
* NY Fed survey finds relative calm on expected path of inflation
* Households hold steady on view for long-term inflation outlook
* Data will likely give Fed officials some confidence about price pressure outlook
May 7 (Reuters) - Americans were unworried at the prospect of a broader inflation breakout in April despite rising price pressures driven by war in the Middle East, a survey released by the Federal Reserve Bank of New York said on Thursday.
Respondents to a survey from the bank said that as of last month, they expected to see inflation a year from now at 3.6%, a modest rise from the 3.4% seen in March.
Expected inflation at the three- and five-year horizons, however, held steady at 3.1% and 3%, respectively.
The year-ahead inflation forecast matched year-ahead expectations in the April 2025 survey.
Households responding to the bank’s Survey of Consumer Expectations also pared back expectations of future gasoline price rises, with the April year-ahead projection down “sharply” to 5.1%, from March’s 9.4% reading.
April year-ahead expected food price inflation views also moderated.
The public’s relatively sanguine view on the future path of inflation contrasts with data showing rising current inflation pressures tied to the ongoing impact of President Donald Trump’s large import tax hikes, coupled with surging gasoline prices tied to supply chain disruptions resulting from the Middle East war.
Worries about inflation have risen to the point that numerous Federal Reserve officials have noted their opposition to the central bank’s decision last week to retain a leaning toward cutting interest rates at some point in the future.
Inflation, as measured by the March personal consumption expenditures price index, was up by 3.5% from the same month a year before, a sharp increase from February’s 2.8% year-over-year gain.
With the war unresolved and pressures on the global economy mounting from the lack of resolution in the conflict, there are widespread expectations among market participants that inflation will likely rise further.
Some Fed officials have even argued the central bank may have to weigh rate increases at some point to bring price pressures back in line.
"On the inflation side we have been missing our 2% objective for the past five years, and with the pressures that we see right now coming from the conflict in Iran, it could mean that those pricing pressures are going to be more persistent," Cleveland Fed President Beth Hammack said in a radio interview on Thursday.
Given the risks on inflation, "my outlook right now is that interest rates will be on hold for quite some time," she said.
The relative calm over the future path of inflation in the New York Fed survey contrasts with consumer sentiment data from the University of Michigan, which in April showed notable deterioration in expectations for both the three- and five-year-ahead time horizons.
Market expectations around the path for longer-run inflation have also risen.
At the same time, gasoline prices have been on a steady rise with the possibility that war-related disruptions will cause even bigger gains in the future.
Data released by the New York Fed on Wednesday showed a big rise in supply chain disruptions along the lines of those suffered during the COVID-19 pandemic, pointing to another vector for rising price pressures.
ANCHORED EXPECTATIONS
Speaking on Monday ahead of the survey’s release, New York Fed President John Williams said, “inflation expectations have remained well-anchored despite the deluge of shocks,” adding market estimates tell a similar story.
“This is critically important, because well-anchored expectations have proven to be invaluable to ensuring price stability during unexpected shocks and extreme uncertainty,” Williams said.
The New York Fed survey found that households held mixed views about the current and future state of their personal finances in April, and saw credit as harder to get now and in the future relative to March.
The survey also found mixed expectations around hiring and earnings and income, with survey respondents projecting higher unemployment a year from now.
Reporting by Michael S. Derby; Editing by Andrea Ricci
https://www.reuters.com/business/ny-fed ... 026-05-07/
SEEMS SO TO ME ...
REUTERS
"NY Fed finds stability in longer-run inflation views in April"
By Michael S. Derby
May 7, 2026
Summary
* NY Fed survey finds relative calm on expected path of inflation
* Households hold steady on view for long-term inflation outlook
* Data will likely give Fed officials some confidence about price pressure outlook
May 7 (Reuters) - Americans were unworried at the prospect of a broader inflation breakout in April despite rising price pressures driven by war in the Middle East, a survey released by the Federal Reserve Bank of New York said on Thursday.
Respondents to a survey from the bank said that as of last month, they expected to see inflation a year from now at 3.6%, a modest rise from the 3.4% seen in March.
Expected inflation at the three- and five-year horizons, however, held steady at 3.1% and 3%, respectively.
The year-ahead inflation forecast matched year-ahead expectations in the April 2025 survey.
Households responding to the bank’s Survey of Consumer Expectations also pared back expectations of future gasoline price rises, with the April year-ahead projection down “sharply” to 5.1%, from March’s 9.4% reading.
April year-ahead expected food price inflation views also moderated.
The public’s relatively sanguine view on the future path of inflation contrasts with data showing rising current inflation pressures tied to the ongoing impact of President Donald Trump’s large import tax hikes, coupled with surging gasoline prices tied to supply chain disruptions resulting from the Middle East war.
Worries about inflation have risen to the point that numerous Federal Reserve officials have noted their opposition to the central bank’s decision last week to retain a leaning toward cutting interest rates at some point in the future.
Inflation, as measured by the March personal consumption expenditures price index, was up by 3.5% from the same month a year before, a sharp increase from February’s 2.8% year-over-year gain.
With the war unresolved and pressures on the global economy mounting from the lack of resolution in the conflict, there are widespread expectations among market participants that inflation will likely rise further.
Some Fed officials have even argued the central bank may have to weigh rate increases at some point to bring price pressures back in line.
"On the inflation side we have been missing our 2% objective for the past five years, and with the pressures that we see right now coming from the conflict in Iran, it could mean that those pricing pressures are going to be more persistent," Cleveland Fed President Beth Hammack said in a radio interview on Thursday.
Given the risks on inflation, "my outlook right now is that interest rates will be on hold for quite some time," she said.
The relative calm over the future path of inflation in the New York Fed survey contrasts with consumer sentiment data from the University of Michigan, which in April showed notable deterioration in expectations for both the three- and five-year-ahead time horizons.
Market expectations around the path for longer-run inflation have also risen.
At the same time, gasoline prices have been on a steady rise with the possibility that war-related disruptions will cause even bigger gains in the future.
Data released by the New York Fed on Wednesday showed a big rise in supply chain disruptions along the lines of those suffered during the COVID-19 pandemic, pointing to another vector for rising price pressures.
ANCHORED EXPECTATIONS
Speaking on Monday ahead of the survey’s release, New York Fed President John Williams said, “inflation expectations have remained well-anchored despite the deluge of shocks,” adding market estimates tell a similar story.
“This is critically important, because well-anchored expectations have proven to be invaluable to ensuring price stability during unexpected shocks and extreme uncertainty,” Williams said.
The New York Fed survey found that households held mixed views about the current and future state of their personal finances in April, and saw credit as harder to get now and in the future relative to March.
The survey also found mixed expectations around hiring and earnings and income, with survey respondents projecting higher unemployment a year from now.
Reporting by Michael S. Derby; Editing by Andrea Ricci
https://www.reuters.com/business/ny-fed ... 026-05-07/
Re: THE DAILY NEWS
REUTERS
"US productivity slows further in first quarter"
By Reuters
May 7, 2026
WASHINGTON, May 7 (Reuters) - U.S. worker productivity growth slowed further in the first quarter, but a reversal was likely as businesses invest heavily in artificial intelligence.
Nonfarm productivity, which measures hourly output per worker, increased at 0.8% annualized rate last quarter, the Labor Department's Bureau of Labor Statistics said on Thursday.
Data for the fourth quarter was revised down to show productivity growing at a 1.6% rate instead of the previously reported 1.8% pace.
The pace has cooled since the 5.2% surge in the third quarter.
Economists polled by Reuters had forecast productivity increasing at a 1.0% rate.
Productivity grew at a 2.9% rate from a year ago.
Economists believe the adoption of AI will boost productivity and rein in labor costs.
Unit labor costs - the price of labor per single unit of output - increased at a 2.3% rate last quarter.
Fourth-quarter productivity growth was revised higher to a 4.6% pace from the previously reported 4.4% rate.
Economists had expected unit labor costs to increase at a 2.6% rate last quarter.
They grew at a 1.2% rate from a year ago.
Hourly compensation increased at a 3.1% rate last quarter and grew at a 4.2% pace from a year ago.
Reporting by Lucia Mutikani, Editing by Nick Zieminski
https://www.reuters.com/business/world- ... 026-05-07/
"US productivity slows further in first quarter"
By Reuters
May 7, 2026
WASHINGTON, May 7 (Reuters) - U.S. worker productivity growth slowed further in the first quarter, but a reversal was likely as businesses invest heavily in artificial intelligence.
Nonfarm productivity, which measures hourly output per worker, increased at 0.8% annualized rate last quarter, the Labor Department's Bureau of Labor Statistics said on Thursday.
Data for the fourth quarter was revised down to show productivity growing at a 1.6% rate instead of the previously reported 1.8% pace.
The pace has cooled since the 5.2% surge in the third quarter.
Economists polled by Reuters had forecast productivity increasing at a 1.0% rate.
Productivity grew at a 2.9% rate from a year ago.
Economists believe the adoption of AI will boost productivity and rein in labor costs.
Unit labor costs - the price of labor per single unit of output - increased at a 2.3% rate last quarter.
Fourth-quarter productivity growth was revised higher to a 4.6% pace from the previously reported 4.4% rate.
Economists had expected unit labor costs to increase at a 2.6% rate last quarter.
They grew at a 1.2% rate from a year ago.
Hourly compensation increased at a 3.1% rate last quarter and grew at a 4.2% pace from a year ago.
Reporting by Lucia Mutikani, Editing by Nick Zieminski
https://www.reuters.com/business/world- ... 026-05-07/
Re: THE DAILY NEWS
Euronews
"Iranian media report exchange of fire with US forces near island in Strait of Hormuz"
Story by Orestes Georgiou Daniel
7 MAY 2026
Iranian state broadcaster IRIB said the country's military fired missiles at US forces on Thursday, after what it described as an attack on an Iranian tanker.
Explosions were initially reported near Bahman pier on Qeshm Island close to the city of Bandar Abbas in southern Iran.
"Following the attack by the US military on an Iranian tanker, the enemy units in the Strait of Hormuz came under Iranian missile fire and were forced to flee after suffering damage," IRIB reported, citing a military officer.
Separately, Israeli Army Radio reported that “After an Iranian tanker was targeted by the United States, Iran targeted a US warship destroyer.”
https://www.euronews.com/2026/05/07/ira ... -of-hormuz
"Iranian media report exchange of fire with US forces near island in Strait of Hormuz"
Story by Orestes Georgiou Daniel
7 MAY 2026
Iranian state broadcaster IRIB said the country's military fired missiles at US forces on Thursday, after what it described as an attack on an Iranian tanker.
Explosions were initially reported near Bahman pier on Qeshm Island close to the city of Bandar Abbas in southern Iran.
"Following the attack by the US military on an Iranian tanker, the enemy units in the Strait of Hormuz came under Iranian missile fire and were forced to flee after suffering damage," IRIB reported, citing a military officer.
Separately, Israeli Army Radio reported that “After an Iranian tanker was targeted by the United States, Iran targeted a US warship destroyer.”
https://www.euronews.com/2026/05/07/ira ... -of-hormuz
Re: THE DAILY NEWS
The New Voice of Ukraine
"Iranian strikes caused major damage to US military bases"
Story by Дем'ян Шевко
7 MAY 2026
The damaged targets include hangars, barracks, fuel depots, aircraft, and key radar, communications, and air defense systems.
As part of its investigation, the newspaper analyzed more than 100 high-resolution satellite images published by Iran.
Journalists verified the authenticity of the images by comparing them with lower-resolution footage from Europe’s Copernicus Programme satellite system and additional high-resolution imagery provided by Planet Labs.
The newspaper identified 217 damaged or destroyed structures and 11 pieces of equipment across 15 U.S. military facilities in the region.
Mark Cancian told the Post that “the Iranian attacks were accurate.”
“There are no random craters indicating misses,” he said while reviewing the images.
Some of the damage may have occurred after U.S. troops had already withdrawn from certain bases, reducing the priority of protecting those facilities, the report noted.
Experts cited in the article said the attacks did not significantly affect the U.S. military’s ability to conduct strikes against Iran.
Satellite imagery showed that Iranian airstrikes damaged or destroyed numerous barracks, hangars, and warehouses at more than half of the U.S. bases examined by the newspaper.
William Goodhind said the images indicated that “the Iranians deliberately targeted residential buildings at several facilities with the intention of causing mass casualties.”
Targets included not only aviation infrastructure, fuel depots, and military equipment, but also gyms, dining halls, and living quarters.
Experts said the apparent vulnerability of U.S. military facilities to Iranian attacks likely stemmed from several factors.
One major factor, they argued, was that Iranian forces proved more resilient than the administration of U.S. President Donald Trump had anticipated.
Analysts also said the U.S. military had not sufficiently adapted to the growing use of strike drones — a lesson they argued American planners should have learned from the war in Ukraine.
Structural shortcomings, including a lack of hardened shelters, also contributed to the damage, experts said.
Cancian also suggested that some of the losses may have resulted from deliberate U.S. decisions or deception tactics.
To preserve valuable missile interceptors, U.S. forces may sometimes allow incoming missiles to strike if they are likely to hit nonessential targets, he said.
He also noted that commanders may have tried to mislead Iranian forces by creating the appearance that bases were occupied when they were actually empty.
The Wall Street Journal reported on May 1 that Iran had softened its position on negotiations with the United States and no longer demanded the lifting of the blockade as a precondition for talks.
Instead, Tehran proposed discussing the reopening of the Strait of Hormuz, security guarantees, and its nuclear program simultaneously.
The Trump administration said on May 1 — the day the deadline expired for military action without congressional approval — that combat operations against Iran had “ceased.”
Associated Press reported on May 3 that Iran’s latest proposal to the United States envisioned resolving key disputes within 30 days, leading to an end to the war rather than an extension of the ceasefire.
U.S. Secretary of State Marco Rubio said on May 5 that the military operation against Iran had ended and the United States had achieved its objectives.
He added that issues related to Iran’s nuclear program, including stockpiles of enriched uranium, would be addressed through further negotiations.
Axios reported on May 6, citing two U.S. officials and two additional informed sources, that Washington and Tehran were nearing a preliminary memorandum agreement that could end the war and define the framework for future nuclear and sanctions-related negotiations.
Trump said on May 6 that if Tehran agreed to a deal with Washington, the United States would lift the blockade of the Strait of Hormuz and end Operation Epic Fury.
Otherwise, he warned, bombing campaigns would resume.
Trump also said the United States had held “very good talks” with Iran over the previous 24 hours.
https://www.msn.com/en-us/news/world/ir ... b5fa&ei=11
"Iranian strikes caused major damage to US military bases"
Story by Дем'ян Шевко
7 MAY 2026
The damaged targets include hangars, barracks, fuel depots, aircraft, and key radar, communications, and air defense systems.
As part of its investigation, the newspaper analyzed more than 100 high-resolution satellite images published by Iran.
Journalists verified the authenticity of the images by comparing them with lower-resolution footage from Europe’s Copernicus Programme satellite system and additional high-resolution imagery provided by Planet Labs.
The newspaper identified 217 damaged or destroyed structures and 11 pieces of equipment across 15 U.S. military facilities in the region.
Mark Cancian told the Post that “the Iranian attacks were accurate.”
“There are no random craters indicating misses,” he said while reviewing the images.
Some of the damage may have occurred after U.S. troops had already withdrawn from certain bases, reducing the priority of protecting those facilities, the report noted.
Experts cited in the article said the attacks did not significantly affect the U.S. military’s ability to conduct strikes against Iran.
Satellite imagery showed that Iranian airstrikes damaged or destroyed numerous barracks, hangars, and warehouses at more than half of the U.S. bases examined by the newspaper.
William Goodhind said the images indicated that “the Iranians deliberately targeted residential buildings at several facilities with the intention of causing mass casualties.”
Targets included not only aviation infrastructure, fuel depots, and military equipment, but also gyms, dining halls, and living quarters.
Experts said the apparent vulnerability of U.S. military facilities to Iranian attacks likely stemmed from several factors.
One major factor, they argued, was that Iranian forces proved more resilient than the administration of U.S. President Donald Trump had anticipated.
Analysts also said the U.S. military had not sufficiently adapted to the growing use of strike drones — a lesson they argued American planners should have learned from the war in Ukraine.
Structural shortcomings, including a lack of hardened shelters, also contributed to the damage, experts said.
Cancian also suggested that some of the losses may have resulted from deliberate U.S. decisions or deception tactics.
To preserve valuable missile interceptors, U.S. forces may sometimes allow incoming missiles to strike if they are likely to hit nonessential targets, he said.
He also noted that commanders may have tried to mislead Iranian forces by creating the appearance that bases were occupied when they were actually empty.
The Wall Street Journal reported on May 1 that Iran had softened its position on negotiations with the United States and no longer demanded the lifting of the blockade as a precondition for talks.
Instead, Tehran proposed discussing the reopening of the Strait of Hormuz, security guarantees, and its nuclear program simultaneously.
The Trump administration said on May 1 — the day the deadline expired for military action without congressional approval — that combat operations against Iran had “ceased.”
Associated Press reported on May 3 that Iran’s latest proposal to the United States envisioned resolving key disputes within 30 days, leading to an end to the war rather than an extension of the ceasefire.
U.S. Secretary of State Marco Rubio said on May 5 that the military operation against Iran had ended and the United States had achieved its objectives.
He added that issues related to Iran’s nuclear program, including stockpiles of enriched uranium, would be addressed through further negotiations.
Axios reported on May 6, citing two U.S. officials and two additional informed sources, that Washington and Tehran were nearing a preliminary memorandum agreement that could end the war and define the framework for future nuclear and sanctions-related negotiations.
Trump said on May 6 that if Tehran agreed to a deal with Washington, the United States would lift the blockade of the Strait of Hormuz and end Operation Epic Fury.
Otherwise, he warned, bombing campaigns would resume.
Trump also said the United States had held “very good talks” with Iran over the previous 24 hours.
https://www.msn.com/en-us/news/world/ir ... b5fa&ei=11
Re: THE DAILY NEWS
RIGZONE
"Crude Settles Higher on Gulf Clashes"
by Bloomberg | Staff
Friday, May 08, 2026
Oil edged higher as traders speculated on whether fresh clashes between the US and Iran would derail a fragile ceasefire, dimming hopes a peace deal may be struck soon.
Brent crude, the global benchmark, rose 1.2% to settle around $101 a barrel, but still notched a weekly drop of about 6%.
Renewed fighting in the Persian Gulf rattled markets even as US officials said they expect Iran to respond to its latest proposal to end the war imminently and reopen the vital shipping route, the Strait of Hormuz.
The oil market's focus remains on the strait, which has been effectively closed since the war began at the end of February.
That's triggered an unprecedented supply shock, with flows of crude choked off and wells across the region shut in.
Iran criticized the US on Friday and said it had violated their ceasefire agreement.
The country is also preparing a plan for the "legal regime" of the strait, according to a statement cited by the semi-official Tasnim news agency.
"Control of the Strait of Hormuz has emerged as Iran's strongest bargaining chip," Societe Generale SA analysts including Ben Hoff wrote in a note.
"Recent vessel seizures and harassment underscored that while diplomacy is the base case, there is a material risk of renewed fighting."
US forces carried out airstrikes on two empty Iranian oil tankers that were trying to break a US naval blockade of the country's ports, and the US targeted missile and drone launch sites in Iran that it said were responsible for attacking three American warships.
US President Donald Trump said the three American warships had successfully exited the waterway, and were undamaged, according to a social-media post.
The ceasefire remains in effect, Trump said after those exchanges of fire.
"Oil is trading between two risks: diplomacy on one side and another escalation on the other," said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
"Markets are still giving the peace proposal a chance, but not enough of a chance to take the war premium out."
The latest clashes heighten tensions across the region, as the US tries to exit the war that's imposed an increasing burden on consumers with retail gasoline and diesel prices spiking.
Inflation concerns have pushed US consumer sentiment to a record low for a second straight month.
Crude briefly dipped on Friday afternoon after Trump announced that there would be a three day ceasefire between Russia and Ukraine.
The conflict, which sent prices soaring when it first began in 2022, has recently been overshadowed by the Iran war.
Prices fluctuated in a roughly $10 range this week as expectations for a resolution to the conflict shifted by the minute.
On Monday, Brent futures surged to about $115 after Iranian attacks on ships and energy infrastructure in the United Arab Emirates, as the US sought to guide vessels through Hormuz.
Futures have since eased as the Trump administration waits for Tehran to respond to its one-page document that would move to end fighting and reopen the strait, even though the two sides would still need to negotiate a deal over Iran's nuclear program.
Iran's leaders have yet to indicate whether they'll accept the proposal's terms.
Extreme volatility has forced dealers to scale back their risk exposure, pushing open interest in the global benchmark to nine-month lows.
Adding to the confusion, Iran on Friday said it seized a tanker in the Gulf of Oman that appeared to be a sanctioned vessel carrying the Islamic Republic's own oil.
The United Arab Emirates, meanwhile, said on Friday air-defense systems were intercepting missiles and drones.
Oil Prices
WTI for June rose 0.6% to settle at $95.42 a barrel in New York.
Brent for July settlement edged up 1.2% to settle at $101.29 a barrel.
The head of the International Energy Agency warned the world was losing 14 million barrels of oil a day because of the war, and ramping up production after the conflict would be gradual.
Fatih Birol also reiterated during a visit to Canada on Thursday that the Paris-based IEA was prepared to take further action after members agreed in March to release 400 million barrels.
Bridgewater Associates founder Ray Dalio said the outcome of the US-Iran conflict can be defined in "almost black-and-white terms of who will control the Strait of Hormuz," according to comments to a New York Times podcast.
https://www.rigzone.com/news/wire/crude ... 1-article/
"Crude Settles Higher on Gulf Clashes"
by Bloomberg | Staff
Friday, May 08, 2026
Oil edged higher as traders speculated on whether fresh clashes between the US and Iran would derail a fragile ceasefire, dimming hopes a peace deal may be struck soon.
Brent crude, the global benchmark, rose 1.2% to settle around $101 a barrel, but still notched a weekly drop of about 6%.
Renewed fighting in the Persian Gulf rattled markets even as US officials said they expect Iran to respond to its latest proposal to end the war imminently and reopen the vital shipping route, the Strait of Hormuz.
The oil market's focus remains on the strait, which has been effectively closed since the war began at the end of February.
That's triggered an unprecedented supply shock, with flows of crude choked off and wells across the region shut in.
Iran criticized the US on Friday and said it had violated their ceasefire agreement.
The country is also preparing a plan for the "legal regime" of the strait, according to a statement cited by the semi-official Tasnim news agency.
"Control of the Strait of Hormuz has emerged as Iran's strongest bargaining chip," Societe Generale SA analysts including Ben Hoff wrote in a note.
"Recent vessel seizures and harassment underscored that while diplomacy is the base case, there is a material risk of renewed fighting."
US forces carried out airstrikes on two empty Iranian oil tankers that were trying to break a US naval blockade of the country's ports, and the US targeted missile and drone launch sites in Iran that it said were responsible for attacking three American warships.
US President Donald Trump said the three American warships had successfully exited the waterway, and were undamaged, according to a social-media post.
The ceasefire remains in effect, Trump said after those exchanges of fire.
"Oil is trading between two risks: diplomacy on one side and another escalation on the other," said Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
"Markets are still giving the peace proposal a chance, but not enough of a chance to take the war premium out."
The latest clashes heighten tensions across the region, as the US tries to exit the war that's imposed an increasing burden on consumers with retail gasoline and diesel prices spiking.
Inflation concerns have pushed US consumer sentiment to a record low for a second straight month.
Crude briefly dipped on Friday afternoon after Trump announced that there would be a three day ceasefire between Russia and Ukraine.
The conflict, which sent prices soaring when it first began in 2022, has recently been overshadowed by the Iran war.
Prices fluctuated in a roughly $10 range this week as expectations for a resolution to the conflict shifted by the minute.
On Monday, Brent futures surged to about $115 after Iranian attacks on ships and energy infrastructure in the United Arab Emirates, as the US sought to guide vessels through Hormuz.
Futures have since eased as the Trump administration waits for Tehran to respond to its one-page document that would move to end fighting and reopen the strait, even though the two sides would still need to negotiate a deal over Iran's nuclear program.
Iran's leaders have yet to indicate whether they'll accept the proposal's terms.
Extreme volatility has forced dealers to scale back their risk exposure, pushing open interest in the global benchmark to nine-month lows.
Adding to the confusion, Iran on Friday said it seized a tanker in the Gulf of Oman that appeared to be a sanctioned vessel carrying the Islamic Republic's own oil.
The United Arab Emirates, meanwhile, said on Friday air-defense systems were intercepting missiles and drones.
Oil Prices
WTI for June rose 0.6% to settle at $95.42 a barrel in New York.
Brent for July settlement edged up 1.2% to settle at $101.29 a barrel.
The head of the International Energy Agency warned the world was losing 14 million barrels of oil a day because of the war, and ramping up production after the conflict would be gradual.
Fatih Birol also reiterated during a visit to Canada on Thursday that the Paris-based IEA was prepared to take further action after members agreed in March to release 400 million barrels.
Bridgewater Associates founder Ray Dalio said the outcome of the US-Iran conflict can be defined in "almost black-and-white terms of who will control the Strait of Hormuz," according to comments to a New York Times podcast.
https://www.rigzone.com/news/wire/crude ... 1-article/
Re: THE DAILY NEWS
CNBC
"10-year Treasury yield declines as lower oil prices dim inflation outlook"
Sean Conlon @SeanAustin96 Yun Li @YunLi626 Hugh Leask
Published Fri, May 8 2026
Treasury yields edged lower Friday as investors looked past a solid April jobs report and focused instead on the prospects for peace in the Middle East that would further ease energy prices and dim inflationary pressure in the economy.
The 10-year Treasury yield — the benchmark for mortgage lending, auto loans and credit card debt — fell more than 2 basis points, reaching 4.366%.
The yield on the 2-year Treasury note — which moves alongside expectations for short-term Federal Reserve interest rate policy — slipped more than 2 basis points to 3.895%.
The longer-dated 30-year Treasury yield also shed more than 2 basis points, falling to 4.945%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Yields remained lower after a better-than-expected payrolls report.
Nonfarm payrolls rose by a seasonally adjusted 115,000 in April, better than the 55,000 forecast by economists surveyed by Dow Jones.
The unemployment rate held steady at 4.3%.
“More solid jobs data leaves the Fed where it’s been for a while — watching and waiting, focused on the inflation side of its mandate,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
“Rate cuts still aren’t on the near-term horizon, but the absence of inflationary threats in today’s report should quiet some of the chatter about a potential hike.”
Investors have grown hopeful this week that the U.S. and Iran will forge a peace agreement that would open the Strait of Hormuz and ease oil prices further.
President Donald Trump said there was “no damage done to the three [U.S. Navy] Destroyers, but great damage done to the Iranian attackers.”
The president also reportedly said that the ceasefire is still in effect, saying the strikes against Iranian targets were “just a love tap.”
West Texas Intermediate futures prices settled marginally higher on Friday at $95.42 per barrel, though the price of U.S. oil has dropped more than 6% this week.
On Thursday, new data from the Department of Labor showed weekly initial jobless claims stood at 200,000 for the week ended May 2, up 10,000 from the week before but below the 206,000 estimated by economists polled by Dow Jones.
https://www.cnbc.com/2026/05/08/treasur ... -data.html
"10-year Treasury yield declines as lower oil prices dim inflation outlook"
Sean Conlon @SeanAustin96 Yun Li @YunLi626 Hugh Leask
Published Fri, May 8 2026
Treasury yields edged lower Friday as investors looked past a solid April jobs report and focused instead on the prospects for peace in the Middle East that would further ease energy prices and dim inflationary pressure in the economy.
The 10-year Treasury yield — the benchmark for mortgage lending, auto loans and credit card debt — fell more than 2 basis points, reaching 4.366%.
The yield on the 2-year Treasury note — which moves alongside expectations for short-term Federal Reserve interest rate policy — slipped more than 2 basis points to 3.895%.
The longer-dated 30-year Treasury yield also shed more than 2 basis points, falling to 4.945%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Yields remained lower after a better-than-expected payrolls report.
Nonfarm payrolls rose by a seasonally adjusted 115,000 in April, better than the 55,000 forecast by economists surveyed by Dow Jones.
The unemployment rate held steady at 4.3%.
“More solid jobs data leaves the Fed where it’s been for a while — watching and waiting, focused on the inflation side of its mandate,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
“Rate cuts still aren’t on the near-term horizon, but the absence of inflationary threats in today’s report should quiet some of the chatter about a potential hike.”
Investors have grown hopeful this week that the U.S. and Iran will forge a peace agreement that would open the Strait of Hormuz and ease oil prices further.
President Donald Trump said there was “no damage done to the three [U.S. Navy] Destroyers, but great damage done to the Iranian attackers.”
The president also reportedly said that the ceasefire is still in effect, saying the strikes against Iranian targets were “just a love tap.”
West Texas Intermediate futures prices settled marginally higher on Friday at $95.42 per barrel, though the price of U.S. oil has dropped more than 6% this week.
On Thursday, new data from the Department of Labor showed weekly initial jobless claims stood at 200,000 for the week ended May 2, up 10,000 from the week before but below the 206,000 estimated by economists polled by Dow Jones.
https://www.cnbc.com/2026/05/08/treasur ... -data.html
Re: THE DAILY NEWS
REUTERS
"S&P 500 and Nasdaq notch records, boosted by AI and earnings optimism"
By Noel Randewich
May 8, 2026
Summary
* US job growth beats expectations in April
* Cloudflare plunges as Q2 forecast disappoints
* S&P 500 +0.84%, Nasdaq +1.71%, Dow +0.02%
May 8 (Reuters) - The S&P 500 and the Nasdaq notched record highs on Friday, boosted by gains in Nvidia, Sandisk and other AI-related stocks, while a stronger-than-expected jobs report pointed to labor market resilience.
Nvidia climbed 1.8%, while memory and storage sellers Micron Technology and Sandisk soared more than 15% each, lifted by strong demand from the rapid buildout of AI data centers.
The Philadelphia SE Semiconductor index jumped, bringing its gain so far in the second quarter to 55%.
The S&P 500 and the Nasdaq have surged to record highs this week as investors focused on strong financial reports from U.S. companies, setting aside concerns that high oil prices related to the Middle East conflict are fueling inflation.
First-quarter S&P 500 earnings are on track to climb almost 29% year-over-year, with much of that growth fueled by Wall Street's AI-related heavyweights, according to LSEG I/B/E/S.
"This is an economy that seems hard to wreck," said Rob Williams, chief investment strategist at Sage Advisory Services in Austin, Texas.
"It's the productivity story, the spending, the consumer wealth effect and the earnings."
Data showed U.S. employment increased more than expected in April and the unemployment rate held steady at 4.3%, reinforcing expectations that the Federal Reserve would leave interest rates unchanged for some time.
Traders expect the central bank will hold interest rates steady in the 3.50% to 3.75% range until the end of the year.
The S&P 500 climbed 0.84% to end the session at 7,398.93 points.
The Nasdaq gained 1.71% to 26,247.08 points, while the Dow Jones Industrial Average rose 0.02% to 49,609.16 points.
The S&P 500 technology index jumped 2.7%, while the utilities sector index fell 0.9%.
The S&P 500 and the Nasdaq notched their sixth straight weekly gains, the longest such winning streak since October 2024.
The Dow has logged two consecutive weekly advances.
The S&P 500 has now gained 8% in 2026, while the Nasdaq has rallied 13%.
The earnings optimism helped investors look past fresh attacks between U.S. and Iranian forces in the Gulf.
Brent crude rose above $100 a barrel as hopes faded for a quick resolution to the Middle East conflict and the gradual reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
The U.S. said it expected a response from Tehran to its latest proposal later on Friday.
Of the 440 S&P 500 companies that have reported first-quarter results so far, 83% have topped analysts' earnings estimates, according to LSEG.
That compares with a long-term average of about 67%.
However, there have been some earnings disappointments.
Cloudflare plunged 24% after the cloud services company said it would cut about 20% of its workforce and forecast second-quarter revenue slightly below Wall Street expectations.
Trade Desk fell 1.8% after the ad-tech firm forecast second-quarter revenue below Wall Street estimates.
CoreWeave dropped 11.4% after the cloud infrastructure technology company raised the lower end of its annual capital expenditure forecast, citing a rise in component costs.
Online travel platform Expedia declined 9% after it flagged that the conflict in the Middle East was hurting demand.
Declining stocks outnumbered rising ones within the S&P 500 by a 1.4-to-one ratio.
The S&P 500 posted 28 new highs and 30 new lows; the Nasdaq recorded 134 new highs and 119 new lows.
Volume on U.S. exchanges was relatively light, with 17.2 billion shares traded, compared to an average of 17.6 billion shares over the previous 20 sessions.
Reporting by Noel Randewich, Sruthi Shankar and Utkarsh Hathi in Bengaluru; Editing by Pooja Desai and David Gregorio
https://www.reuters.com/business/us-sto ... 026-05-08/
"S&P 500 and Nasdaq notch records, boosted by AI and earnings optimism"
By Noel Randewich
May 8, 2026
Summary
* US job growth beats expectations in April
* Cloudflare plunges as Q2 forecast disappoints
* S&P 500 +0.84%, Nasdaq +1.71%, Dow +0.02%
May 8 (Reuters) - The S&P 500 and the Nasdaq notched record highs on Friday, boosted by gains in Nvidia, Sandisk and other AI-related stocks, while a stronger-than-expected jobs report pointed to labor market resilience.
Nvidia climbed 1.8%, while memory and storage sellers Micron Technology and Sandisk soared more than 15% each, lifted by strong demand from the rapid buildout of AI data centers.
The Philadelphia SE Semiconductor index jumped, bringing its gain so far in the second quarter to 55%.
The S&P 500 and the Nasdaq have surged to record highs this week as investors focused on strong financial reports from U.S. companies, setting aside concerns that high oil prices related to the Middle East conflict are fueling inflation.
First-quarter S&P 500 earnings are on track to climb almost 29% year-over-year, with much of that growth fueled by Wall Street's AI-related heavyweights, according to LSEG I/B/E/S.
"This is an economy that seems hard to wreck," said Rob Williams, chief investment strategist at Sage Advisory Services in Austin, Texas.
"It's the productivity story, the spending, the consumer wealth effect and the earnings."
Data showed U.S. employment increased more than expected in April and the unemployment rate held steady at 4.3%, reinforcing expectations that the Federal Reserve would leave interest rates unchanged for some time.
Traders expect the central bank will hold interest rates steady in the 3.50% to 3.75% range until the end of the year.
The S&P 500 climbed 0.84% to end the session at 7,398.93 points.
The Nasdaq gained 1.71% to 26,247.08 points, while the Dow Jones Industrial Average rose 0.02% to 49,609.16 points.
The S&P 500 technology index jumped 2.7%, while the utilities sector index fell 0.9%.
The S&P 500 and the Nasdaq notched their sixth straight weekly gains, the longest such winning streak since October 2024.
The Dow has logged two consecutive weekly advances.
The S&P 500 has now gained 8% in 2026, while the Nasdaq has rallied 13%.
The earnings optimism helped investors look past fresh attacks between U.S. and Iranian forces in the Gulf.
Brent crude rose above $100 a barrel as hopes faded for a quick resolution to the Middle East conflict and the gradual reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
The U.S. said it expected a response from Tehran to its latest proposal later on Friday.
Of the 440 S&P 500 companies that have reported first-quarter results so far, 83% have topped analysts' earnings estimates, according to LSEG.
That compares with a long-term average of about 67%.
However, there have been some earnings disappointments.
Cloudflare plunged 24% after the cloud services company said it would cut about 20% of its workforce and forecast second-quarter revenue slightly below Wall Street expectations.
Trade Desk fell 1.8% after the ad-tech firm forecast second-quarter revenue below Wall Street estimates.
CoreWeave dropped 11.4% after the cloud infrastructure technology company raised the lower end of its annual capital expenditure forecast, citing a rise in component costs.
Online travel platform Expedia declined 9% after it flagged that the conflict in the Middle East was hurting demand.
Declining stocks outnumbered rising ones within the S&P 500 by a 1.4-to-one ratio.
The S&P 500 posted 28 new highs and 30 new lows; the Nasdaq recorded 134 new highs and 119 new lows.
Volume on U.S. exchanges was relatively light, with 17.2 billion shares traded, compared to an average of 17.6 billion shares over the previous 20 sessions.
Reporting by Noel Randewich, Sruthi Shankar and Utkarsh Hathi in Bengaluru; Editing by Pooja Desai and David Gregorio
https://www.reuters.com/business/us-sto ... 026-05-08/
Re: THE DAILY NEWS
REUTERS
"US economy posts second straight month of strong job gains, but strains remain"
By Lucia Mutikani
May 8, 2026
Summary
* Nonfarm payrolls increase 115,000 in April, above expectations for a 62,000 gain
* The number of part-time workers rises 445,000 to 4.9 million
* Unemployment rate unchanged at 4.3% as people drop out of the labor force
WASHINGTON, May 8 (Reuters) - U.S. employment increased more than expected in April, pointing to labor market stability and reinforcing expectations the Federal Reserve would keep interest rates unchanged for some time as the war with Iran fans inflation.
Despite the second straight month of strong job growth reported by the Labor Department on Friday, strains remained and economists warned the labor market was not out of the woods yet.
The number of people working part-time for economic reasons increased by the most in 14 months and there were also more multiple job holders.
Household employment decreased for a fourth consecutive month, but was offset by a continued contraction in the labor force, keeping the unemployment rate unchanged at 4.3% after rounding.
The jobless rate is calculated from the household survey.
"Labor demand and supply remain in an uneasy balance, however, and labor market conditions could weaken again swiftly as financial pressures from rising prices weigh on household purchasing power," said Scott Anderson, chief U.S. economist at BMO Capital Markets.
"There is nothing in this report to move the Fed off the sidelines on future rate cuts."
Nonfarm payrolls increased by 115,000 jobs last month after an upwardly revised 185,000 advance in March, the Labor Department's Bureau of Labor Statistics said.
Economists polled by Reuters had forecast payrolls rising by 62,000 jobs after a previously reported 178,000 rebound in March.
Estimates ranged from a loss of 15,000 jobs to a gain of 150,000 positions.
The back-to-back rise shown in the survey of establishments offered hope payrolls were settling down following volatility since mid-2025, partly attributed by economists to an adjustment to the birth-and-death model, which the government uses to estimate how many jobs were gained or lost because of companies opening or closing in a given month.
Weather, strikes and government job cuts as well as big changes to the labor force amid an immigration crackdown by President Donald Trump's administration also added to the wild swings, economists said.
They recommended looking at the three-month moving average of payrolls, which was 48,000 in April.
That was down from a monthly average of 72,000 during the same period last year.
Economists say uncertainty wrought by Trump's trade policy has constrained hiring.
Trump's sweeping tariffs early this year were struck down by the U.S. Supreme Court.
The U.S. Court of International Trade ruled on Thursday that a replacement of those duties was unjustified.
Economists said it was too early for the effects of the U.S.-Israeli war with Iran to show.
The conflict has raised gasoline and diesel prices as well as the cost of other commodities that are shipped through the Strait of Hormuz.
Financial markets increased bets that the U.S. central bank would not cut rates this year.
The Fed last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing inflation worries.
Stocks on Wall Street rose, with the S&P 500 and the Nasdaq indexes touching record highs.
The dollar slipped against a basket of currencies.
U.S. Treasury yields fell.
HEALTHCARE IS DOMINATING EMPLOYMENT GAINS
The healthcare sector again led the increase in payrolls in April, adding 37,000 jobs, mostly at nursing and residential care facilities as well as home healthcare services, reflecting an aging population.
Transportation and warehousing employment increased by 30,000, boosted by demand for couriers and messengers.
Still, employment in the sector was down by 105,000 since peaking in February 2025.
Retail payrolls rose by 22,000 jobs while the social assistance sector added 17,000 positions.
Leisure and hospitality employment increased by 14,000 jobs.
But the federal government shed another 9,000 positions and employment is down by 348,000, or 11.5%, since hitting a peak in October 2024.
The White House last year launched an unprecedented campaign to slash the federal workforce as it seeks to remake the government.
But there has recently been a push in some agencies to rebuild staff levels.
There were job losses in the information, manufacturing and financial activities industries.
The share of industries reporting job growth fell to 53.8% from 56.8% in March.
The average workweek lengthened to 34.3 hours from 34.2 hours in March.
Wage growth improved, with average hourly earnings increasing 3.6% year-on-year from 3.4% in March.
The gains are likely to be eroded by gasoline prices, with the average national retail price surging more than 50% to about $4.55 a gallon since the war started.
The University of Michigan's Surveys of Consumers on Friday showed sentiment hit a record low in early May, blamed on gasoline and import tariffs.
Labor market strains were highlighted by the household survey.
The number of people working part-time for economic reasons jumped by 445,000, the largest increase since February 2025, to 4.9 million.
Household employment dropped by 226,000 jobs and was down 1.37 million this year.
Another 92,000 people dropped out of the labor force, bringing the tally so far this year to 1.5 million.
The labor force participation rate fell to 61.8% from 61.9% in March, and has declined since December.
Economists estimated that the unemployment rate would have risen to 4.4%, without the drop in participation.
The jobless rate rose to 4.34% from 4.26% in March before rounding.
A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, increased to 8.2% from 8.0% in March.
Lower immigration and an aging population meant the economy needed to create between zero and 50,000 jobs per month to keep up with growth in the working-age population, economists estimated.
With the so-called breakeven level of job growth much lower than in prior years, they did not expect a surge in the unemployment rate, even if employment gains slowed considerably.
"Slower population growth, aging demographics and a sharp slowdown in immigration are keeping labor supply structurally tight," said Lydia Boussour, senior economist at EY-Parthenon.
"This limited supply buffer is allowing unemployment to remain range-bound even as hiring slows."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/world/us/us-job ... 026-05-08/
"US economy posts second straight month of strong job gains, but strains remain"
By Lucia Mutikani
May 8, 2026
Summary
* Nonfarm payrolls increase 115,000 in April, above expectations for a 62,000 gain
* The number of part-time workers rises 445,000 to 4.9 million
* Unemployment rate unchanged at 4.3% as people drop out of the labor force
WASHINGTON, May 8 (Reuters) - U.S. employment increased more than expected in April, pointing to labor market stability and reinforcing expectations the Federal Reserve would keep interest rates unchanged for some time as the war with Iran fans inflation.
Despite the second straight month of strong job growth reported by the Labor Department on Friday, strains remained and economists warned the labor market was not out of the woods yet.
The number of people working part-time for economic reasons increased by the most in 14 months and there were also more multiple job holders.
Household employment decreased for a fourth consecutive month, but was offset by a continued contraction in the labor force, keeping the unemployment rate unchanged at 4.3% after rounding.
The jobless rate is calculated from the household survey.
"Labor demand and supply remain in an uneasy balance, however, and labor market conditions could weaken again swiftly as financial pressures from rising prices weigh on household purchasing power," said Scott Anderson, chief U.S. economist at BMO Capital Markets.
"There is nothing in this report to move the Fed off the sidelines on future rate cuts."
Nonfarm payrolls increased by 115,000 jobs last month after an upwardly revised 185,000 advance in March, the Labor Department's Bureau of Labor Statistics said.
Economists polled by Reuters had forecast payrolls rising by 62,000 jobs after a previously reported 178,000 rebound in March.
Estimates ranged from a loss of 15,000 jobs to a gain of 150,000 positions.
The back-to-back rise shown in the survey of establishments offered hope payrolls were settling down following volatility since mid-2025, partly attributed by economists to an adjustment to the birth-and-death model, which the government uses to estimate how many jobs were gained or lost because of companies opening or closing in a given month.
Weather, strikes and government job cuts as well as big changes to the labor force amid an immigration crackdown by President Donald Trump's administration also added to the wild swings, economists said.
They recommended looking at the three-month moving average of payrolls, which was 48,000 in April.
That was down from a monthly average of 72,000 during the same period last year.
Economists say uncertainty wrought by Trump's trade policy has constrained hiring.
Trump's sweeping tariffs early this year were struck down by the U.S. Supreme Court.
The U.S. Court of International Trade ruled on Thursday that a replacement of those duties was unjustified.
Economists said it was too early for the effects of the U.S.-Israeli war with Iran to show.
The conflict has raised gasoline and diesel prices as well as the cost of other commodities that are shipped through the Strait of Hormuz.
Financial markets increased bets that the U.S. central bank would not cut rates this year.
The Fed last week left its benchmark overnight interest rate in the 3.50%-3.75% range, citing inflation worries.
Stocks on Wall Street rose, with the S&P 500 and the Nasdaq indexes touching record highs.
The dollar slipped against a basket of currencies.
U.S. Treasury yields fell.
HEALTHCARE IS DOMINATING EMPLOYMENT GAINS
The healthcare sector again led the increase in payrolls in April, adding 37,000 jobs, mostly at nursing and residential care facilities as well as home healthcare services, reflecting an aging population.
Transportation and warehousing employment increased by 30,000, boosted by demand for couriers and messengers.
Still, employment in the sector was down by 105,000 since peaking in February 2025.
Retail payrolls rose by 22,000 jobs while the social assistance sector added 17,000 positions.
Leisure and hospitality employment increased by 14,000 jobs.
But the federal government shed another 9,000 positions and employment is down by 348,000, or 11.5%, since hitting a peak in October 2024.
The White House last year launched an unprecedented campaign to slash the federal workforce as it seeks to remake the government.
But there has recently been a push in some agencies to rebuild staff levels.
There were job losses in the information, manufacturing and financial activities industries.
The share of industries reporting job growth fell to 53.8% from 56.8% in March.
The average workweek lengthened to 34.3 hours from 34.2 hours in March.
Wage growth improved, with average hourly earnings increasing 3.6% year-on-year from 3.4% in March.
The gains are likely to be eroded by gasoline prices, with the average national retail price surging more than 50% to about $4.55 a gallon since the war started.
The University of Michigan's Surveys of Consumers on Friday showed sentiment hit a record low in early May, blamed on gasoline and import tariffs.
Labor market strains were highlighted by the household survey.
The number of people working part-time for economic reasons jumped by 445,000, the largest increase since February 2025, to 4.9 million.
Household employment dropped by 226,000 jobs and was down 1.37 million this year.
Another 92,000 people dropped out of the labor force, bringing the tally so far this year to 1.5 million.
The labor force participation rate fell to 61.8% from 61.9% in March, and has declined since December.
Economists estimated that the unemployment rate would have risen to 4.4%, without the drop in participation.
The jobless rate rose to 4.34% from 4.26% in March before rounding.
A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, increased to 8.2% from 8.0% in March.
Lower immigration and an aging population meant the economy needed to create between zero and 50,000 jobs per month to keep up with growth in the working-age population, economists estimated.
With the so-called breakeven level of job growth much lower than in prior years, they did not expect a surge in the unemployment rate, even if employment gains slowed considerably.
"Slower population growth, aging demographics and a sharp slowdown in immigration are keeping labor supply structurally tight," said Lydia Boussour, senior economist at EY-Parthenon.
"This limited supply buffer is allowing unemployment to remain range-bound even as hiring slows."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci
https://www.reuters.com/world/us/us-job ... 026-05-08/