Prices of U.S. Treasuries were trading lower.
"Based on. how the USA political system works, President Trump was never going to be able to legislate as boldly, and unilaterally, as some rhetoric suggested", said James Athey, senior investment manager at Aberdeen Asset Management in London.
So-called continuing claims, or the number of people collecting jobless benefits, fell by 22,000 to 1.9 million in early May, the government said Thursday. That pushed claims close to levels last seen in 1973.
Economists polled by MarketWatch has expected new claims to total a seasonally adjusted 240,000 in the seven days stretching from May 7 to May 13.
Trump denies telling Comey to back off Flynn investigation
Trump said there was "no collusion" but added that he can only speak for himself. He was controversially fired by the president on May 9.
Claims have been below 240,000 for the past 3 weeks and the sustained low level of initial claims continues to indicate that layoffs are running at very low levels. That's the longest such streak since 1970. Employers added 211,000 jobs in April as the unemployment rate fell to a 10-year low of 4.4 per cent. The latest week's data covers the period used for the monthly employment survey for May, which will be released June 2.
To get out ahead of possible inflation, the Federal Reserve has raised its benchmark interest rates twice since December and forecasts another two increases this year.
The economy grew by just 0.7 per cent in the first three months of the year, but there are signs it will expand more quickly in the current quarter. Stocks on Wall Street were slightly higher after Wednesday's sell-off.
It was buoyed by a surge in the shipments sub-index.