US Unemployment Claims Hit 50‑Year Low as AI Chip Boom Fuels Global Growth

U.S. applications for unemployment benefits dropped to an estimated 187,000 last week, the lowest level since September 1969, indicating muted layoffs and a still‑tight labor market. The decline adds to signs that the Federal Reserve can keep its focus on inflation while weighing mixed signals from low unemployment and rising price pressures.

In South Korea, an artificial‑intelligence‑driven chip boom spurred second‑quarter growth that outpaced expectations, bolstering arguments for further interest‑rate tightening in the region. Meanwhile, the European Central Bank rejected an immediate rate increase, with President Christine Lagarde flagging a possible hike in September, and German investor optimism reached a five‑month high.

Together, the low U.S. jobless claims and the AI chip surge are lifting the global economic outlook, even as the Middle‑East conflict and higher oil and gas prices keep inflationary pressures on the radar of policymakers worldwide.