By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — Wall Street is ticking toward more records on Thursday following mixed U.S. data that likely keeps the path clear for the Federal Reserve to cut interest rates in order to boost the economy.

The S&P 500 rose 0.4% and was on track to set an all-time high for a third straight day. The Dow Jones Industrial Average was up 168 points, or 0.4%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.4% higher, coming off its own record.

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Treasury yields swiveled a couple times in the bond market but remained relatively calm following the economic reports, which Wall Street took as cementing the case for a cut to rates at the Fed’s meeting next week.

One of the reports said more U.S. workers applied for unemployment benefits last week, an indication that the number of layoffs could be rising. It’s the latest discouraging signal on the job market, where hiring has slowed substantially. The labor market had seemed to be settling into a low-hire, low-fire state, but an increase in layoffs could put it in an even tighter vise.

The hope on Wall Street has been for a slowdown, but only for a precisely measured one. The job market has to be worrying enough to get the Fed to cut interest rates, which can give a kickstart to the economy and to prices for investments, but not so weak that it causes a recession.

The Fed has been hesitant to cut interest rates throughout 2025 because of the threat that President Donald Trump’s tariffs could make inflation worse. That’s because lower interest rates can push inflation even higher.

A report on inflation Thursday showed prices are continuing to rise faster for U.S. households than the Fed hopes, but only by the amount that economists expected. Consumers paid prices for food, gasoline and other costs of living that were 2.9% higher in August than a year earlier, a slight acceleration from July’s 2.7% inflation rate.

That’s above the Fed’s target of 2%, but traders believe not by enough to convince the Fed that inflation is the bigger problem now for the economy than the slowing job market. The Fed has just one tool to fix both problems, and moving interest rates to help one often hurts the other in the short term.

“Right now, inflation is a key subplot, but the labor market is still the main story,” according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.

On Wall Street, Kroger rose 1.6% after the grocer reported a stronger profit for the latest quarter than analysts expected, though its revenue came up just shy of forecasts. It also raised the bottom end of its forecasted range for profit over the full year.

Opendoor Technologies jumped 34% after the company, which helps people buy and sell homes online, said it hired Shopify’s chief operating officer, Kaz Nejatian, as its CEO. It also announced a $40 million investment in the company by one of its founders and an investment firm tied to another founder.

In stock markets abroad, European indexes ticked higher after the European Central Bank left interest rates unchanged at its latest meeting. The European bank is on pause following an earlier set of cuts, and its president, Christine Lagarde, said future moves are “not on a predetermined path.”

France’s CAC 40 rose 0.8%, and Germany’s DAX returned 0.3%.

In Asia, indexes were mixed. Stocks jumped 1.7% in Shanghai but fell 0.4% in Hong Kong.

In the bond market, the yield on the 10-year Treasury eased to 4.02% from 4.04% late Wednesday.

AP Writers Teresa Cerojano and Matt Ott contributed.

MINNESOTA at CALIFORNIA

When: 9:30 p.m. (CDT) Saturday
Where: Memorial Stadium, Berkeley, Calif.
TV: ESPN
Radio: KFAN, 100.3 FM
Weather: 66 degrees, partly cloudy, 12 mph east wind
Betting spread: Minnesota, minus-2.5

Records: The Gophers (2-0) eviscerated Northwestern (La.) State 66-0 on Saturday after a season-opening 23-10 win over Buffalo. Cal (2-0) walked past Texas Southern 35-3 on Saturday after beating former Pac-12 opponent Oregon State, 34-15, in Game 1.

History: The Golden Bears lead the all-time series 4-2, with Marshawn Lynch and DeSean Jackson combining for five touchdowns in a 42-17 home win over Minnesota in 2006.

Stat: Minnesota climbed to No. 33 in ESPN’s efficiency metric SP+, while Cal registers at 52 through Week 2. When it comes to each program’s top-ranked opponents, Buffalo (1-1) sits at 85th, Oregon State (0-2) at 97.

Big question: How much does continuity matter? Cal has survived more than 20 players transferring out from last year’s team, while the Gophers have sustained only a few important defections. Head coach P.J. Fleck preaches “cultural sustainability” and this early season foe from a Power Four conference will put that concept under a microscope.

Key matchup: Cal QB Jaron-Keawe Sagapolutele vs. Gophers secondary. The former five-star recruit, per On3, has not played like a true freshman. “He’s really scary,” Fleck said. The U safeties are the deepest position on the roster, but the newer cornerbacks will get their stiffest test yet.

Who has the edge?

Gophers offense vs. Cal defense: The U’s most versatile offensive weapon, RB Darius Taylor, is questionable after appearing to pull his right hamstring last weekend. If he can’t play, Minnesota will likely turn to a trio of tailbacks: A.J. Turner, Cam Davis and Fame Ijeboi. Cal has been strong against the run so far this year, ranking 14th in the nation with only 58 yards allowed per game. … Gophers coordinator Greg Harbaugh gained respect for Bears head coach Justin Wilcox when Western Michigan prepared for Wilcox’s Wisconsin defense in the 2017 Cotton Bowl. Wilcox’s defenses have multiple fronts from four to three down linemen, including stemming on the same play, and disguised coverages. “It’s a challenge, especially for a young quarterback (Drake Lindsey) to be able to manage all of that,” Harbaugh said. … DE Ryan McCullough is twitchy off the edge with 1 1/2 sacks and 14 pressures in 83 pass-rush snaps, per Pro Football Focus. He will be problematic for the U’s new tackles — freshman Nathan Roy and senior Dylan Ray. … The heart of the defense is LB Cade Uluave, who has 15 tackles, but also five missed tackles through two games. EDGE: California 

Gophers defense vs. Cal offense: Sagapolutele has been a revelation after last year’s starter, Fernando Mendoza, transferred to Indiana. In the Oregon State win, he posted the highest PFF passing grade (95.5) for a true freshman in an FBS game since 2014. The next closest? Caleb Williams, Zach Wilson, Brock Purdy and Tua Tagovailoa. The 6-foot-3 lefty can spin it, completing 68% this season for 493 yards, three touchdowns and one interception. He also has 37 yards on the ground and a rushing TD. “Very accurate,” coordinator Danny Collins said. “He’s really comfortable back there, comfortable running their offense, like he has run their offense for a lot of years.” … After zero takeaways against Buffalo, Minnesota had four against Northwestern State, including two returned for touchdowns. “We challenged our defense to be obsessed with the football and that is what we have to continue to challenge,” Collins said. Cal has only one giveaway through two games. … The Bears’ offense is led by coordinator Bryan Harsin, the former Boise State and Auburn head coach. “We have to have crazy communication all game long,” Collins said. “Coach Harsin has been doing this for a long time.” … Slot WR Jacob De Jesus is a shifty 5-foot-7 threat, while 6-4 split WR Trond Grizzell is a big target. … Veteran DT Jalen Logan-Redding hurt his right leg last week and might not play Saturday. EDGE: Gophers 

Special teams: PR/KR Jacob De Jesus was an All-America returner at UNLV and has a combined 147 return yards so far this season. Minnesota has been within the top 30 in both kick and punt return yards allowed. … Both teams are each 4-for-4 on field goals and average 42 yards on punts. … Koi Perich has yet to make a splash play in either return game. EDGE: California

Prediction: One anonymous ACC assistant coach told Athlon  Sports that Cal was in “serious trouble” after last season’s exodus, but they have rebounded and will give a grave scare to the Gophers. Yet Minnesota will be fundamental enough to eek out a win. Gophers, 19-17. 

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By MATT OTT, Associated Press Business Writer

WASHINGTON (AP) — U.S. jobless claim applications jumped to their highest level in almost four years last week, the latest sign that the labor market is softening.

The number of Americans filing for unemployment benefits for the week ending Sept. 6 rose 27,000 to 263,000, the Labor Department reported Thursday. That’s the most filings since the week of Oct. 23, 2021 and well above the 231,000 new applications economists forecast.

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Weekly applications for jobless benefits are considered a proxy for layoffs and have mostly settled in a historically low range between 200,000 and 250,000 since the U.S. began to emerge from the COVID-19 pandemic nearly four years ago.

Despite last week’s increase, layoffs remain relatively low by historical measures and hiring has weakened, a trend that economists describe as “no hire, no fire.”

Earlier this week, the Bureau of Labor Statistics issued a massive preliminary revision of U.S. job gains for the 12 months ending in March, further evidence that the labor market has not been as strong as previously thought.

The BLS’s revised figures showed that U.S. employers added 911,000 fewer jobs than originally reported in the year ending in March 2025, with the biggest weakness coming from the leisure and hospitality sector, professional and business services and retail. The report showed that job gains were tapering long before President Donald Trump rolled out his far-reaching tariffs on U.S. trading partners in April.

The department issues the revisions every year, intending to better account for new businesses and ones that had gone out of business. Final revisions will come out in February 2026.

The updated figures came after the agency reported Friday that the economy generated just 22,000 jobs in August, well below the 80,000 economists were expecting.

Also last week, the government said that U.S. employers advertised 7.2 million job openings at the end of July, fewer than economists had forecast and the first time since April of 2021 that there were more unemployed Americans than job postings.

Last month’s grim July employment report, which showed job gains of just 73,000 and included huge downward revisions for June and May, sent financial markets spiraling and prompted Trump to fire the head of the agency that compiles the monthly data.

The various labor market reports have bolstered fears that Trump’s erratic economic policies, including the unpredictable taxes on imports, have created so much uncertainty that businesses are reluctant to hire.

Broader U.S. economic growth has weakened so far this year as many companies have pulled back on expansion projects amid the uncertainty surrounding the impacts of the tariffs. Growth slowed to about a 1.3% annual rate in the first half of the year, down from 2.5% in 2024.

The sluggishness in the job market is a key reason that Federal Reserve Chair Jerome Powell recently signaled that the central bank may cut its key interest rate at its meeting next week. A cut could reduce other borrowing costs in the economy, including mortgages, auto loans, and business borrowing.

While a rate cut could spur economic growth, economists fear it could push inflation even farther above the Fed’s target of 2%.

Thursday’s report showed that the four-week average of claims, which evens out some of the week-to-week volatility, rose by 9,750 to 240,500.

The total number of Americans collecting unemployment benefits for the previous week of Aug. 30 was unchanged at 1.94 million.

By CHRISTOPHER RUGABER, Associated Press Economics Writer

WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries, hotel rooms and airfares rose, along with the cost of clothes and used cars.

Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the Federal Reserve’s 2% target.

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The reading is the last the Fed will receive before its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the new inflation data underscores the challenges the Fed is facing as it experiences relentless pressure from President Donald Trump to cut rates. Inflation remains stubborn while the job market is weakening, diverging trends that would require polar reactions from Federal Reserve policymakers to address.

Hiring has slowed sharply in recent months and was lower than previously estimated last year. The unemployment rate ticked up in August to a still-low 4.3%. And weekly unemployment claims rose sharply last week, the government also reported Thursday, a sign layoffs may be picking up.

Typically the Fed would cut its key rate when unemployment rose to spur more spending and growth. Yet it would do the opposite and raise rates — or at least keep them unchanged — in the face of rising inflation. Last month, Chair Jerome Powell signaled that Fed officials are increasingly concerned about jobs. Yet stubbornly high inflation could keep the Fed from cutting very quickly.

On a monthly basis, overall inflation accelerated, as prices rose 0.4% from July to August, faster than the 0.2% pace the previous month. Core prices rose 0.3% for the second straight month.

Gas prices jumped 1.9% just from July to August, the biggest monthly increase since a 4% rise in December. Grocery prices climbed 0.6%, pushed higher by more expensive tomatoes, apples, and beef. The cost of travel soared, with air fares rising 5.9% just from July to August and hotel room prices rising 2.3%. Rental costs also increased, rising 0.4%, faster than the previous month.

The impact of tariffs appeared to be mixed, with many imported goods rising in price but modestly. Clothing costs rose 0.5% just last month, though they are still just slightly more expensive than a year ago. Furniture costs rose 0.3% and are 4.7% higher than a year earlier. Appliance costs also rose from July to August, after falling the previous month.

The inflation data arrives at the same time that Trump has sought to fire Fed governor Lisa Cook as part of an effort to assert more control over the Fed. Yet late Tuesday, a court said the firing was illegal and ruled that Cook could keep her job while the dispute played out in the courts.