Lowest US unemployment claims raise hopes for Fed's rate hike but US equities remain sluggish

The weekly jobless claims of the US printed in at 255K their lowest level since 1973. These numbers have beaten the forecasts at 279K and also from the previous flash at 281K. We think these improved jobless numbers strikes a chord on the market hoping that the Fed will move on interest rate in September.

Hike in interest rates is not a bad thing because it indicates that the economy heading towards a recovery path and looking to enter into a good shape.

Basically, the fact that US market sells off every time it nears all-time highs is because people take money off the table and then again buy on dips. Equities in the US were under stress on yesterday and closed lower as a deluge of lackluster earnings pressured the major indices.

Earnings are the major drivers right now. The US markets oscillates still on see-saw by trading up close to its all time highs but certainly off those highs that we achieved earlier in the week.