U.S. initial jobless claims unexpectedly rose, and the probability of the Federal Reserve cutting interest rates by 25 basis points in December fell slightly to 96.7%

The number of Americans filing for unemployment benefits unexpectedly rose last week, with the number of people receiving benefits continuing to rise at the end of November compared with the beginning of the year as labor demand cooled. The Labor Department reported on Thursday that initial claims for unemployment benefits rose by 17,000 to a seasonally adjusted 242,000 in the week ended December 7. Economists had expected only 220,000 initial claims last week. The jump in initial claims last week may reflect volatility after the Thanksgiving holiday and may not mark a sudden shift in job market conditions. Initial claims may still fluctuate in the coming weeks, which could make it difficult to get a clear read on the job market. According to CME's "Fed Watch," the probability that the Fed will keep the current interest rate unchanged by December rose slightly to 3.3%, and the probability of a cumulative 25 basis point rate cut fell slightly to 96.7%.