The Market’s Bad Job 👔

The Market’s Bad Job

Trade war? What trade war? US companies just hired an army of new workers according to June’s jobs report! The labor force was overweight on expectations by over a third on Friday, soothing investor fears about an impending crash. Let’s take a closer look…

New data from the US Labor Department surprised investors with plentiful number of job growth in the American economy (+225,000). Wages seem to be growing as well (+3.1%), though a shade under expectations and the unemployment rate remained as low as ever (3.7%). On the whole, a pretty good sit-rep for us market-watchers to pour over this morning, as we await the opening bell!

However, water-cooler gossip just got interesting. This year, the US stock market priced in a business-boosting interest rate cut. It’s widely tipped to be on its way, but these are some high-grade job figures. Will they convince the Fed to hold back that rate cut, after all? The market’s already eaten its cake by baking it into the stock prices it’s willing to pay, but with the Fed under the impression that investors aren’t starving anymore, might it never actually serve that cake? Then what?

These fears sent stocks down the tubes on Friday. US Economist Andrew Hunter agrees with the market sentiment, saying these new figures are “making a mockery” of investor hopes for a cut. However, the most dovish of tones out there happened to be the most Trump-ish. The President huffed and puffed about a “Fed that doesn’t know what it’s doing” if it doesn’t lower rates. Though of course, front and center of his mind will be ensuring that this record-breaking expansion prevails (at least until the end of his term!).

It promises to be a lively week ahead for the stock market. You never know what the Federal Reserve will throw at you! See you out in the field!

Share:
More Posts
OPEC’s Decision 🛢

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.