Mixed Signals: Jobless Claims Rise While Retail Sales Remain Strong

US unemployment claims rose to 262,000, exceeding expectations for the second consecutive week, while retail sales for May increased by 0.3%, beating economists' forecasts of a 0.1% decline. The US labor market shows early signs of cooling off, in line with Federal Reserve forecasts, but remains tight with an unemployment rate of 3.7%. Markets were volatile, with futures on the S&P 500 index falling 0.6%, and investors raised their expectations on a Fed rate hike in July, with market-implied probabilities rising from 72% to 74%.