U.S. Labor Market Rebalancing, Economy Slowing: Reuters

The number of Americans filing new claims for jobless benefits fell last week, offsetting nearly half of the previous increase, indicating a gradually cooling labor market, Lucia Mutikani reported for Reuters.

Single-family homebuilding declined for the second consecutive month in April, and permits for future construction hit an eight-month low.

Other data suggested the economy lost further momentum early in the second quarter due to the Federal Reserve's significant interest rate hikes.

Single-family homebuilding declined for the second consecutive month in April, and permits for future construction hit an eight-month low. Additionally, factory output unexpectedly decreased.

Sal Guatieri, a senior economist at BMO Capital Markets, noted that the economy is losing momentum due to restrictive monetary policy.

Initial claims for state unemployment benefits dropped by 10,000 to a seasonally adjusted 222,000 for the week ended May 11, slightly above economists' expectations of 220,000 claims.