We’ve run this chart a million times, but we’re not getting bored of it.
The S&P 500 vs. weekly initial jobless claims continues to be a beautiful chart, as the two lines have moved in virtual lockstop through the last five years. When Jobless Claims improve, stocks improve. When the opposite happens, stocks down down.
The primary takeaway from the chart: The market rally is based on fundamentals of the economy. Forget headlines or great rotations or the Fed. It’s still all about the economy.