Wall Street analyzes employment data: Investors are betting on a buoyant economy

Wall Street analyzes data on job offers
Investors focus on a thriving economy

The US employment report for June is better than expected. Nevertheless, concerns about further rate hikes remain on Wall Street. According to media reports, Elon Musk is dissatisfied with the news from Twitter – the rate is falling.

US stock markets have moved the fine line between confidence in the economy and fear of recession. The background was the US labor market report for June, which was much better than expected. On the one hand, it did not show a negative impact on the already made interest rate hikes and thus spoke in favor of a strong economy, on the other hand, it raised concerns about further aggressive interest rate hikes by the US Federal Reserve, which had previously been talked about an overheated labor market. However, soaring interest rates could not only slow down growth but also lead to a recession, in line with financial market concerns.

However, the optimists gained the advantage in trading, betting that a soft landing will be possible. “This gives the Fed a little more confidence that it can be more aggressive without seriously damaging the labor market,” commented Edward Jones investment expert Mona Mahajan, adding, “It will hit the economy at some point.”

S&P 500 3901.47

After losses at the opening, at noon the indices turned upwards and defended the slight gains at least until the end of the trade. Confidence in the economy also had an impact on the oil market, where oil prices rose by around 2%.

FROM Dow Jones Index fell by a minimum of 0.1 percent. to 31,338 points. For S&P 500 also slightly decreased after four consecutive days of gains Nasdaq indices closed a little higher. According to preliminary information, Nysa had 1,624 (Thursday: 2,527) winners and 1,610 (725) losers. 146 (133) titles were closed unchanged.

In the bond market, prices fell, so yields rose, in line with the underlying expectations of rate hikes. The 10-year profitability rose by 8 basis points to 3.08 percent. The yield curve therefore remained inverted, signaling a risk of recession.

Wage growth in the expected range

While the unemployment rate remained unchanged at 3.6 percent. despite the creation of significantly more jobs than expected, the increase in hourly wages was within the expected 5.1% range. compared to the previous year. Wage growth at this persistently high level maintains pressure on the central bank to contain inflation, observers said.

FROM dollar The bottom line is that not much has changed, especially since interest rate expectations have not changed. FROM Euro the last one was $ 1,0180, and was already available for a day hole for $ 1,00072.

We are waiting impatiently for the US inflation data next week. Consumer prices in June are expected to increase by 1.0 percent month-on-month and 8.8 percent year-on-year. This would be the highest increase in the US since December 1981.

Musk dissatisfied with Twitter statement

Twitter
Twitter 36.28

For Twittershares fell 4.8 percent. As reported by the Washington Post, citing informed people, the team around Tesla CEO Elon Musk, who wanted to take over the company, believes that the information requested and provided by Twitter is insufficient. The background is Musk’s concerns that many of the user accounts on the platform could be fake, which could hinder the hijacking. Meanwhile, Twitter announced it would be shedding jobs due to a slowdown in business and a possible upcoming takeover.

interruption of the game fell 4.9 percent after a video game retailer also announced layoffs and separation from its chief financial officer. The day before, the price rose 15 percent on news of the stock split. Levi Strauss rose 1.0 percent after the jeans maker exceeded expectations with second-quarter sales and profit.

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