All articles tagged with #us payrolls
Gold prices are on track for a weekly gain of about 3.9%, reaching near record highs, driven by weaker-than-expected US job growth, geopolitical tensions, and expectations of Federal Reserve rate cuts, with projections of gold potentially surpassing $5,000 in 2026.
US job growth in December was weaker than expected with a 50,000 increase, but the unemployment rate fell to 4.4%, indicating a mixed labor market outlook. The year saw the slowest job gains outside of a recession since 2003, reflecting a hiring recession despite strong economic growth and consumer spending. The report influences Federal Reserve interest rate decisions amid ongoing economic uncertainty.
Most Asian stocks rose as investors awaited US nonfarm payrolls data, with Japan leading gains on trade optimism following a US-Japan trade deal and positive economic data, while Chinese markets steadied after recent losses and regional markets showed mixed performance amid global economic cues.
US job growth slowed in May to 139,000 new jobs, slightly below expectations, while the unemployment rate remained steady at 4.2%, providing the Federal Reserve with a potential pause to delay interest rate cuts. Market reactions included gains in stocks and bond yields, with analysts viewing the report as a sign of a resilient labor market that may support continued economic growth.
In May, US nonfarm payrolls increased by 139,000, surpassing expectations, with the unemployment rate steady at 4.2%. Wage growth was stronger than anticipated, and job gains were led by healthcare and leisure sectors, despite economic uncertainties caused by tariffs and global trade tensions. Market futures rose following the report, but underlying data showed some volatility and concerns about the economic outlook amid ongoing trade disputes.
Goldman Sachs forecasts a steady US May payroll increase of 125,000 with unemployment at 4.2%, and a modest wage growth of 0.3% m/m, while noting potential declines in federal jobs due to staffing cuts amid trade uncertainties, suggesting a balanced labor market report that may keep the Fed patient.
The S&P 500 and Nasdaq closed slightly down ahead of a key U.S. payrolls report, with technology, utilities, and industrials dragging the indices lower. Nvidia fell 1.1%, while Lululemon rose 4.8% on strong quarterly results. Investors are anticipating potential interest rate cuts from the Federal Reserve, with a 68% chance of a September reduction.
China shares fell to fresh five-year lows, posting their worst weekly drop in five years despite late-session signs of state support, while blowout earnings at Amazon and Meta buoyed European and U.S. futures ahead of labor-market data. The tech rally looked set to spill over to European markets, with Treasuries eyeing their best week of 2024, and investors awaiting U.S. payrolls data on Friday, which could impact Federal Reserve interest rate decisions.
Economists predict that US payrolls will see a pickup in November as striking United Auto Workers return to vehicle assembly lines, interrupting the recent trend of moderating employment growth. Projections indicate an increase of 180,000 jobs, following a 150,000 advance in October. However, average job growth over the past three months is still down by approximately 100,000 compared to earlier in the year.
Bond selling has temporarily subsided as investors await U.S. jobs data that could influence interest rate decisions. Oil prices have also eased, providing relief. Asian shares outside Japan rose, while Tokyo's Nikkei remained flat. The dollar is on track for its 12th consecutive week of gains, with the euro and sterling near lows. The yen showed resilience after a sudden jump raised intervention speculation. Gold prices stabilized after nine days of losses. The market awaits labor market data and U.S. Treasury supply and CPI data for further direction.
Global shares remain steady as investors await China's efforts to boost its economy and U.S. jobs data to determine if the Federal Reserve will raise interest rates this month. Oil prices are set to rebound as supplies tighten. Falls in U.S. Treasury yields have weighed on the dollar, which is on track to end its winning streak. Analysts predict the Fed will pause on rate hikes in September due to weakening growth. There are doubts that the European Central Bank will raise rates as the euro zone economy falters. China's factory activity unexpectedly expanded in August, suggesting government efforts to spur growth may be working.