The number of initial jobless claims in the United States has surged, and the Fed has fully priced in a rate cut next week.

The number of initial jobless claims in the United States increased sharply last week, consistent with a marked weakening of labor market conditions. The Bureau of Labor Statistics reported Thursday that initial jobless claims rose by 27,000 to 263,000 in the week ending September 6, exceeding the previous reading of 236,000 and the expected reading of 235,000. The US government said this week that non-farm payrolls may have been overstated by 911,000 in the 12 months ending in March. Last week's non-farm payroll report showed that job growth almost stagnated in August, with job losses in June, the first such decline in four and a half years. A New York Fed survey also showed that consumer confidence in finding a job in August fell to its lowest level since June 2013. The Federal Reserve is expected to cut interest rates next week, with a 25 basis point cut already fully priced in by the market. (Jinshi)