All articles tagged with #us jobs market
The US jobs market is showing signs of strain with diverging trends between stock market growth and employment, prompting the Federal Reserve to cut interest rates as a precaution against a potential downturn, raising concerns about a possible economic cliff.
The US jobs market shows signs of stagnation with rising layoffs reported by large companies and low hiring activity, but low jobless claims and stable unemployment rates suggest it isn't collapsing yet. The delayed employment reports due to the government shutdown complicate the assessment of the labor market's health, which may remain uncertain until early next year.
The number of Americans applying for unemployment benefits dipped slightly to 217,000, indicating a stable economy with low job losses. However, businesses are hiring less and the labor market has cooled off. The recent UAW auto strike may have inflated claims. While the unemployment rate remains low and few companies are laying off workers, the number of people collecting unemployment benefits has risen for seven consecutive weeks, suggesting it is taking longer for individuals to find new jobs. Despite some concerns, economists believe that the strong jobs market will continue to support economic expansion.
Global stock indexes surged, the US dollar fell to a six-week low, and US Treasury yields dropped to five-week lows after data revealed that US job growth in October was slower than expected. The slowdown in job growth suggests that the Federal Reserve may halt its interest rate hikes. The decrease in annual wages also indicates a softening labor market. The positive outcome is that the slowdown may keep the Fed from raising rates further. The rally in bonds was fueled by the US Treasury's decision to issue less long-term debt than anticipated and data suggesting a cooling US economy.
Asian shares surged after positive news from the US jobs market, which indicated that while the market remains healthy, there are signs of cooling. This raised hopes among investors that the Federal Reserve may ease up on its campaign to slow the US economy by raising interest rates. Additionally, China's financial regulators provided fresh stimulus for the struggling property sector, further supporting buying. Hong Kong's Hang Seng index jumped 2.4%, the Shanghai Composite index added 1%, and Tokyo's Nikkei 225 was up 0.6%. US markets were closed for the Labor Day holiday.
Gold prices continue to surge, reaching a 13-month high, as US data shows the jobs market loosening more than expected, diminishing bets the Federal Reserve will hike interest rates again. The precious metal closed above the $2,000 an ounce threshold for the first time since March 2022, and is nearing its all-time high of $2,075.47 reached in August 2020 after a sharp rally last month driven by turmoil in the US and Swiss banking sectors. Cooling economic indicators curb expectations for further Fed tightening, which tends to weigh on the non-interest bearing asset.