The number of people applying for unemployment benefits rose back above 400,000 last week. Still, the four-week average, a more reliable gauge of the job market, fell to the lowest level since mid-April.
Hiring picked up slightly in July, and the unemployment rate dipped to 9.1 percent. The modest improvement could ease fears of another recession, but it wasn't enough to prevent another wild day of trading on Wall Street.
The two-week plunge in stock prices is signaling economic anxiety, but it's also compounding the problem: Lower stock prices are shrinking Americans' wealth, rattling their confidence and making them less inclined to spend. And employers may become even slower to hire.