Though some technical factors accounted for the elevation in claims, there has been a rise in layoffs, with economists saying President Donald Trump's broad tariffs had created a challenging economic environment for businesses. The claims data covered the period during which the government surveyed businesses for the nonfarm payrolls component of June's employment report.
Federal Reserve officials wrapping up their two-day policy meeting on Wednesday are expected to leave the U.S. central bank's its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December, while monitoring the economic fallout from the import duties and the conflict between Israel and Iran.