US stocks dip as surprise jump in jobless claims sparks recovery concerns

US stocks dip as surprise jump in jobless claims sparks recovery concerns

US equities closed modestly lower on Thursday after an unexpected increase in weekly jobless claims prompted concerns the labor market's recovery hit a new snag.

The number of Americans filing for unemployment benefits totaled an unadjusted 861,000 last week, the Labor Department said Thursday morning. The reading lands handily above the 773,000 claims expected by economists surveyed by Bloomberg. The sum is also the highest since mid-January.

Continuing claims, which track Americans receiving unemployment benefits, declined slightly to 4.5 million for the week that ended February 6. Economists projected a larger decline to 4.4 million. The data suggests that, while some pockets of the economy rebound, the labor market's recovery continues to hit snags.

Here's where US indexes stood at the 4 p.m. ET close on Thursday:

The gloomy report could amount to a single "bump in the road" before the labor market improves further, Mike Loewengart, managing director of investment strategy at E-Trade, said. Falling virus case counts and vaccine distribution should open the door to accelerated hiring and continued recovery, he added.

"Further when you factor in Congress' willingness and ability to repeatedly step in to keep our economy running as we recover, it is more than likely that a disappointing read like