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US Stocks Jump as Employers Unexpectedly Cut 23,000 Jobs, Raising Hopes that Rate Hikes Can Wait
Markets priced in less than a 50% chance of a September Federal Reserve hike after U.S. employers cut 23,000 jobs and payroll revisions deepened the slowdown.
- On Friday, the Labor Department reported that U.S. employers unexpectedly shed 23,000 jobs in July, with downward revisions shaving 103,000 positions from May and June payrolls.
- Traders reacted swiftly, cutting bets on Federal Reserve interest-rate hikes as odds of a September increase dropped to roughly 40% from 60% before the report.
- Yields on two-year U.S. Treasuries fell eight basis points to 4.16% on Friday; Tom di Galoma, managing director at Mischler Financial Group, said, "The headline number being negative is a total shock."
- Next week's Consumer Price Index data, due Aug. 12, will be key; Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, noted that inflation figures will likely be the deciding factor for the Fed.
- The Bank of America Institute offered contrasting analysis, suggesting payroll growth may have accelerated during July, attributed to increased job mobility boosting after-tax wage growth for lower-income households.
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Fewer jobs in the US are lowering expectations that the US central bank will raise interest rates.
·Copenhagen, Denmark
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Dollar drops as weak jobs data pushes out Fed hike expectations | Honolulu Star-Advertiser
NEW YORK >> The dollar fell against major currencies, including the yen and euro, today after U.S. employment unexpectedly declined in July, fueling concerns about the economy’s strength and undermining the case for the Federal Reserve to raise interest rates.
·Honolulu, United States
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Coverage Details
Total News Sources64
Leaning Left11Leaning Right11Center26Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 23%
C 54%
R 23%
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