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I interviewed with a NYC firm two weeks ago, and the recruiting sent a status update today via email (I was on verge of sending an email stating my continued interest). The email stated the team at the firm is still seriously considering my candidacy, and they’ll be in touch asap.

Is it normal for firms to send out status updates when I did not ask for one? Is it safe to assume that there are higher chances of an impending offer or am I just reading too much into the message?

I think it means exactly what it says - that you are still being considered. It looks like they like you, but they are either 1) still interviewing other people for the position, 2) seeing if they could fill the position internally, or 3) waiting for more applicants. Either way, congrats - you're still in the running!

I had the exact same update from firm recruiting people, saying like we are still in the process of interviewing people, BUT THE ATTORNEYS really liked meeting you and its' simply their needs does not support moving faster. Recruit asked if I have expiring offer please let them know so they can nudge the attorneys a little bit. But once I got my dream firm I was just like "see you later." It's still positive, but this kind of wait-and-see really bothers me.

If you are interested in other firms, go to them. Status update my ass give me a job offer.

There are times when it is necessary to think like a regular person, and not a lawyer. This is one of those times. Take the letter at bloody face value and be happy you're still being considered.