The U.S. Labor Department said today that initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 408,000, whchc is above economists' expectations for a rise to 400,000.
In addition, the Consumer Price Index increased a whopping 0.5% in July, the largest gain since March. That was above economists' expectations for a 0.2 percent gain.
0.5% per month is equivalent to 6.16% per year, annualized.
The markets are reacting accordingly.