Employers are holding on to workers even as hiring stays weak, pushing seasonally adjusted initial jobless claims to 194,000 for the week ending Oct. 17, close to the 189,000 reported for the week of July 18, which was the lowest since the late 1960s. Claims have averaged 212,000 over the past year, and the four-week moving average has fallen to 197,750. The labor market backdrop remains uncertain: nonfarm payrolls rose only 29,000 in September and have averaged 69,000 a month in 2026, while the unemployment rate rose to 4.2%, largely due to a sharp jump in labor force participation. Layoffs remain modest, falling by 61,000 in August, and the layoff rate fell to 1% over the prior 12 months. Ahead of the Federal Reserve's decision next week, policymakers describe the labor market as generally strong and are focused on inflation, which remains well above the 2% target; markets expect the Fed to hold in October and then raise rates by a quarter point in December.
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Related tickers and likely impact
DXY
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/21/2026 | 101.70 |
| Change that session | 0.00% |
XAU/USD
▼ Likely negativeRelevance: low
| Market | Gold |
|---|---|
| Close on 10/21/2026 | 4,141.17 |
| Change that session | +0.39% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/21/2026 | 773.13 |
| Change that session | +0.53% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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