Before the jobs report for July rolled in, people didn’t have high expectations. What with such turmoil in the economy as of late, hopes were set low and bleak. However, by the time the results came in, things actually turned out a lot better than expected. The results were double than expected, leading many finance analysts to hold a more optimistic view of things to come in the future.
However, this might actually turn out to be a curse in some branches of the finance industry, according to some. Many believe that this recent job report uptick will actually cause the Federal Reserve to be that much more aggressive as far as interest rates go.
As a result, some wonder if this would mean a lot less stock trading. Ever since the news for the jobs report of July came out, many have expected a quick downdraft in stocks.
“I think it does at the S&P level for the index,” said Mike Wilson, a strategist for Morgan Stanley. He also maintained that the conditions that the market is in right now are such that the S&P 500 may oust the lows of June by the time fall comes around.
If this actually comes to fruition, the S&P 500 may actually find itself losing 8% at the least. This is more than enough reason for stock market traders to worry—yet another thing to add to the list.