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Economists polled by Reuters had expected the number of jobless claims to fall to 224000 last week. In recent weeks, the number of initial jobless claims has been very volatile around the US holiday season and at the end of the year.
Last week's drop in initial claims for unemployment benefits largely offset the huge increase two weeks ago. That's because Thanksgiving is later than 2018, which could invalidate the government's model for eliminating seasonal fluctuations in the data.
U.S. stocks rose slightly after the data, as optimism continued that the two countries would soon reach a trade deal.
President Trump said on Tuesday that he and Chinese President Xi Jinping will hold a signing ceremony to sign the first stage trade agreement between China and the United States this month.
Despite the slowdown in manufacturing growth and sluggish corporate investment in the United States, the current situation shows that the labor market in the United States remains strong. Economists attribute the downturn in business investment to the uncertainty of Trump's Sino US trade war.
In November, the U.S. unemployment rate fell to 3.5%, the lowest level in nearly half a century.
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