The number of initial unemployment claims in the United States surged, and the Fed's rate cut next week has been fully priced in.

The number of initial unemployment claims in the United States increased significantly last week, in line with a noticeable softening in the job market. The U.S. Department of Labor announced on Thursday that the number of initial jobless claims increased by 27,000 to 263,000 in the week ending September 6, higher than the previous value of 236,000 and the expected value of 235,000. The U.S. government stated this week that nonfarm employment may have been overestimated by 911,000 in the 12 months ending in March. The nonfarm report last week showed that job growth in August almost stalled, with job losses in June for the first time in four and a half years. A survey by the New York Fed also showed that consumer confidence in finding a job in August dropped to its lowest level since June 2013. The Federal Reserve is expected to cut interest rates next week, and the 25 basis point rate cut has already been fully factored into the market.