US jobless claims fell again last week, blunting concerns that the labor market is in danger. First-time filings for the week ended Sept. 20 totaled a seasonally adjusted 218,000, close to the lowest level this year.

US economic growth for the second quarter was revised up to a sizzling 3.8% from the previous 3.3% estimate. The faster pace was GDP was primarily due to new additional data on consumer spending. Personal consumption expenditures rose at an annualized pace of 2.5% in Q2, well above the previously reported 1.6% estimate.

Trump announced new tariffs on drugs, trucks and kitchen cabinets that start Oct. 1. The new tariffs could impact major producers of branded pharmaceuticals produced in the UK, Ireland, Germany, Switzerland and Japan.

The US trade deficit in goods fell sharply in August amid a plunge in imports. The goods trade gap narrowed 16.8% to $85.5 billion last month, the Commerce Department’s Census Bureau said.

New orders for durable goods from US manufacturers rose 2.9% in August, beating expectations for a modest decline. “A lot of that strength was concentrated in aircraft,” said Bill Adams, an economist with Comerica Bank.

Tech earnings are driving US equity returns year to date, advises BlackRock: “AI-linked sectors and companies have delivered on earnings, driving their returns year to date. Returns beyond the US have mostly been driven by rising valuations.”

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