The US job market has cooled down sharply, driving up the stock market and falling bond yields. Markets speculate that the Federal Reserve may or may not be forced to raise interest rates in the short term. At 9:33 New York time, the S&P 500 index rose 0.4%, the Nasdaq 100 index rose 1.1%, and the Dow remained basically flat. The stock market suspended its decline for two days, and the S&P 500 index is expected to have the best weekly performance since April. eToro's Bret Kenwell said that the latest employment report was weak enough to ease the pressure on the Federal Reserve to raise interest rates, but not weak enough to indicate that the labor market or the overall economy is stalling. “Inflation is still a cause for concern, but today's data may give policymakers more reason to be patient and give investors more room to invest in risky assets,” he said. Brent Wilsey of Wilsey Asset Management said that Friday's employment report not only fell far short of expectations, but also showed that the economy lost jobs in July, which left the Federal Reserve in a dilemma because inflation is still high and sticky. Goldman Sachs Asset Management's Lindsay Rosner said, “Although the next inflation data will be the final deciding factor, slowing employment growth supported the Federal Reserve to keep interest rates unchanged in September.” Ellen Zentner of Morgan Stanley Wealth Management pointed out that weak non-farm payrolls data may ease the pressure on the Federal Reserve to raise interest rates at the September meeting, but the inflation data released next week may still be a decisive factor. She added, “If the inflation data is higher than expected, then even if the labor market cools down, it may not be enough to dampen the call for interest rate hikes within the Federal Reserve or lower the market's expectations for rate hikes.”
Zhitongcaijing · 1d ago
Share
Listen to the news
The US job market has cooled down sharply, driving up the stock market and falling bond yields. Markets speculate that the Federal Reserve may or may not be forced to raise interest rates in the short term. At 9:33 New York time, the S&P 500 index rose 0.4%, the Nasdaq 100 index rose 1.1%, and the Dow remained basically flat. The stock market suspended its decline for two days, and the S&P 500 index is expected to have the best weekly performance since April. eToro's Bret Kenwell said that the latest employment report was weak enough to ease the pressure on the Federal Reserve to raise interest rates, but not weak enough to indicate that the labor market or the overall economy is stalling. “Inflation is still a cause for concern, but today's data may give policymakers more reason to be patient and give investors more room to invest in risky assets,” he said. Brent Wilsey of Wilsey Asset Management said that Friday's employment report not only fell far short of expectations, but also showed that the economy lost jobs in July, which left the Federal Reserve in a dilemma because inflation is still high and sticky. Goldman Sachs Asset Management's Lindsay Rosner said, “Although the next inflation data will be the final deciding factor, slowing employment growth supported the Federal Reserve to keep interest rates unchanged in September.” Ellen Zentner of Morgan Stanley Wealth Management pointed out that weak non-farm payrolls data may ease the pressure on the Federal Reserve to raise interest rates at the September meeting, but the inflation data released next week may still be a decisive factor. She added, “If the inflation data is higher than expected, then even if the labor market cools down, it may not be enough to dampen the call for interest rate hikes within the Federal Reserve or lower the market's expectations for rate hikes.”
Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.
What's Trending