From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 5/7/2026
U.S. equity markets are mixed Thursday morning as investors monitor oil prices and corporate earnings. Both the S&P 500 and Nasdaq reached new record highs this morning, while the DJIA is lower. Stocks finished higher on Wednesday on reports that the U.S. and Iran were close to an agreement that would end the war.
Initial jobless claims rose by 10,000 to 200,000 for the week ending May 2, slightly above the prior week’s upwardly revised 190,000 but below market expectations of around 205,000, indicating layoffs remain historically low. Continuing claims, which lag by one week, fell by 10,000 to 1.766 million for the week ended April 25.
U.S. nonfarm business labor productivity rose at a 0.8% annualized rate in the first quarter of 2026, slowing from a revised 1.6% gain in the fourth quarter of 2025 and falling short of market expectations for roughly 1.4% growth. Output increased 1.5% while hours worked rose 0.7%, resulting in more modest efficiency gains than in late 2025, though productivity was still up 2.9% from a year earlier. Unit labor costs increased 2.3% in the quarter, below expectations of about 2.6%, reflecting a partial offset from productivity growth against a 3.1% rise in hourly compensation.
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