Weekly Mortgage Rates Dip; Fed Rate Hike Unlikely After Jobs Data
The report’s 57,000-job gain and lower rate-hike odds sent gold up 2.5% and silver up 4.3%, while miners and high-growth stocks rallied.
- The Labor Department reported on Thursday that the economy added 57,000 jobs in June, significantly below the 115,000 forecast, signaling a cooling labor market that prompted investors to dial back expectations for imminent Federal Reserve rate hikes.
- Concerns about rising prices and a hawkish pivot from the Federal Reserve had fueled investor anxiety that excessive labor market strength might force central bankers to tighten policy, threatening valuations for high-growth tech stocks.
- The Treasury yield fell to 4.12%, fueling a rally in precious metals as spot gold climbed 2.5% to about $4,134 an ounce. Fintech stocks like Robinhood Markets gained, benefiting from reduced rate-hike pressure.
- According to the CME FedWatch Tool, the probability of a rate hike at the Fed's July 29 meeting fell to about 20%, unwinding previous bets and giving the Federal Reserve additional time to assess economic data.
- While data volatility warrants caution, the average 30-year mortgage rate fell to 6.28% APR, and investors look toward second-quarter earnings to see if lofty stock valuations can be sustained amid mixed economic signals.
61 Articles
61 Articles
Dollar heads for weekly drop as jobs data dims Fed hike bets
The U.S. employment report, known as the payroll, came weaker than expected by the market in June, leading operators to lower their bets on a monetary squeeze at the next meeting of the Federal Reserve (Fed, U.S. central bank) at the end of July. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Gold heads for weekly gain as weak US jobs data lowers rate-hike bets
Gold rose on Friday and was set for a weekly gain after four straight weeks of declines, as weaker U.S. jobs data reduced expectations for a near-term Federal Reserve rate increase.Spot gold was up 1.5% at $4,184.75 per ounce by 0835 GMT, after hitting its highest since June 23. Bullion held above the 21-day moving average and was up 2.4% for the week so far.U.S. gold futures for August delivery gained 1.73% to $4,197.20.Gold's rise was driven…
DJIA Hits Record High As Soft Jobs Data Crush Rate Hike Odds; Chipmakers Drag (NASDAQ: QQQ), (NYSE: DIA), (NYSE: SPY)
U.S. stock markets closed mixed on Thursday as weaker-than-expected June jobs data cooled fears of further Federal Reserve rate hikes, sending the Dow Jones to a fresh record. The S&P 500 (NYSE: SPY) ended the session flat, while the Nasdaq 100 (NASDAQ: QQQ) slipped 1.6% and the Dow Jones Industrial Average (NYSE: DIA) added 1.1% to close at an all-time high. The Russell 2000, which tracks small-cap equities, also declined, losing 0.6% as invest…
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