S&P Awaits US Jobs Data
After a second consecutive day of losses for the S&P, all eyes will be on US jobs data for signs of economic strength and justification for the Fed’s decision to hold rates steady…The anticipation is killing us!
Jerome Powell’s decision to keep rates at their current levels, despite weaker inflation rates, was largely informed by March’s blockbuster jobs report and the view that inflation would return as the economic outlook improved towards the end of 2019. Today’s announcement will no-doubt shed some light on whether he’s on the right track or not.
Investors will be looking closely at wage growth numbers as a key metric for inflation. Strong wage growth will support Powell’s decision to hold rates steady, but any weakness could spark more speculation about possible rate cuts before the end of the year.
Analysts are expecting robust wage growth and new jobs additions (+181k) to follow the previous jobs report which came in at whopping +196k last month. A positive result could generate some good buying momentum for the S&P 500 and the Dollar, but a negative surprise could see the last two days of selling activity continue into next week.
Who’s ready for a big day? Don’t blink or you might miss it!
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