All articles tagged with #labor market data
The S&P 500 reached a record high as market expectations for a Federal Reserve rate cut remained intact despite mixed labor market data, with gains driven by strong performances in tech and consumer discretionary stocks, amid anticipation of the upcoming U.S. jobs report.
Wall Street's indexes rose after labor data supported expectations of a Federal Reserve interest rate cut, despite Salesforce's stock decline following a weak revenue forecast. Investors are focused on upcoming nonfarm payrolls data, with market sentiment influenced by recent labor market signals and corporate earnings reports.
President Trump announced his intention to nominate E.J. Antoni, a critic of the BLS, as the new agency head, replacing the fired Erika McEntarfer amid controversy over data integrity and political influence. Antoni, a conservative economist with ties to the Heritage Foundation, has questioned the reliability of recent labor data, and his appointment raises concerns about the independence and accuracy of economic reporting.
U.S. stocks slipped as investors await key labor market data, with the S&P 500 down 0.2%, the Dow Jones falling 148 points, and the Nasdaq slipping 0.1%. Designer Brands and Bath & Body Works saw significant declines after earnings reports. Global markets also experienced declines, with notable drops in India's Sensex and European indices. The U.S. dollar weakened amid economic concerns, and crude oil prices fell.
Tech stocks, led by Alphabet, surged on Thursday, driving the Nasdaq Composite up nearly 1.4% and the S&P 500 up 0.8%. The Dow Jones Industrial Average lagged behind, rising only 0.2%. Investors are closely watching labor market data for signs of the Federal Reserve's interest rate hikes having their desired impact on inflation. With a soft landing for the economy appearing more likely, traders are betting on a Fed policy shift to cut rates. The upcoming monthly US jobs report will be a crucial test of inflation and interest rate expectations before the Fed's last meeting of the year next week.
Tech stocks led the major averages higher as investors focused on labor market data for clues about interest rates. The Dow Jones Industrial Average lagged behind, while the S&P 500 and Nasdaq Composite saw gains. Signs of a normalizing labor market suggest that the Federal Reserve's interest rate hikes are having the desired impact. Tech stocks, particularly Alphabet, surged after the company launched new AI initiatives. The upcoming monthly US jobs report will be a crucial test for inflation and interest rate expectations before the Fed's last meeting of the year. Oil prices also regained some ground after hitting a five-month low.
Tech stocks led the major averages higher as investors focused on labor market data for clues about interest rates. The Dow Jones Industrial Average lagged behind, while the S&P 500 and Nasdaq Composite rebounded, driven by tech stocks like Alphabet. The latest weekly jobless claims data showed a slight increase, but the crucial monthly US jobs report on Friday will provide a clearer picture of inflation and interest rate expectations. In other news, mortgage rates fell for the sixth straight week, boosting the refinance market, and stocks opened higher as investors monitored labor market data.
U.S. Treasury yields remained relatively unchanged as investors assessed the state of the economy following the release of labor market data and awaited the November jobs report. The 10-year Treasury yield dipped slightly to 4.17%, while the 2-year Treasury yield recovered some losses to reach 4.589%. Yields fell on Tuesday after lower-than-expected job openings figures indicated a cooling labor market. Uncertainty about the outlook for interest rates persists, with the Federal Reserve expected to keep rates unchanged but providing few hints about the duration of elevated rates.
The US jobs market remains steady, but there are mixed signals from different sources of data. Private payroll processor ADP and the Bureau of Labor Statistics (BLS) often produce different estimates of monthly job hires, making it difficult to determine the true state of the labor market. The Federal Reserve closely monitors the labor market to gauge signs of a slowdown and determine whether more rate hikes are needed to cool the market and control inflation. While ADP and BLS data have their limitations and variations, they provide valuable insights when used together, and blending their sources of data could potentially offer a more accurate view of the labor market.
The 10-year Treasury yield retreated after reaching a multi-month high, following the release of labor market data showing fewer-than-expected job additions in July. The yield briefly touched 4.206%, the highest level since November 2022, before dropping to 4.042%. The 2-year Treasury also fell. The data, which included a modest increase in average hourly earnings, suggests that demand for labor remains strong but hiring is being hindered by a lack of labor supply. Investors are now awaiting the July consumer price index report, which could influence the Federal Reserve's interest rate decision in September.