While the Nasdaq Composite Index rose earlier in the day, it retreated to end the first day of the new month flat. The S&P 500 carved out a slender gain of 0.2%, while the Dow Jones Industrial Average managed to rise over 0.3%. Still, each major index suffered losses for the month of August.

The latest jobs data appears to come as little surprise to the Federal Reserve, according to the words of Fed Chair Jerome Powell. “We expect this labor market rebalancing to continue,” Powell explained at the Jackson Hole Economic Symposium last week. “Evidence that the tightness in the labor market is no longer easing could also call for a monetary policy response.”

The post Stocks Close Mixed Following Unexpected Jobs Data appeared first on theprimarymarket.com.

Jefferies US economist Thomas Simons explained, “Given the tightness in the labor market, more supply is welcome, and sometimes it takes a little while for new entrants to find a fit.” Contrary to the upward trajectory in unemployment, the civilian labor force grew in numbers, adding 736,000 participants from the previous month. The labor force participation rate for August was 62.8%; its highest level since February 2020, when it reached 63.3%.

This latest jobs report has indicated a more balanced labor market, which is a good sign for the Federal Reserve as its September meeting approaches. This cooldown could be a factor in the argument to convince the central bank to hold off on further interest rate hikes.

The post Unemployment Hits 18-Month High in Latest Jobs Report appeared first on theprimarymarket.com.

The massive job gains have brought down the unemployment rate to 3.5%, returning the job market to its pre-pandemic levels. This jobless rate was last season in February 2020, when it marked the lowest point in almost 50 years.

Among other bits of info, the Bureau of Labor Statistics report also showed that Americans are earning 0.5% more per hour compared to an estimated 0.4%. Also, hourly earnings increased 5.2% year over year.

These numbers have caught experts by surprise as the Fed’s interest rate hikes and surging inflation were expected to cool off the U.S. labor market. However, it appears that the layoffs and job cuts mainly targeted the tech industry, with the service industry ramping up its hiring due to increased customer demand. A big part of the process was also businesses hiring back the employees they laid off during the pandemic.

Analysts now believe that these numbers will make the Fed even more aggressive with increasing interest rates. The committee is set to meet again in September when it might bump up the rates by another 0.7% points. This would be the third hike in the same range since June.

The post U.S. Labor Market Delivers a Surprise With Massive Job Gains appeared first on theprimarymarket.com.

While the Nasdaq Composite Index rose earlier in the day, it retreated to end the first day of the new month flat. The S&P 500 carved out a slender gain of 0.2%, while the Dow Jones Industrial Average managed to rise over 0.3%. Still, each major index suffered losses for the month of August.

The latest jobs data appears to come as little surprise to the Federal Reserve, according to the words of Fed Chair Jerome Powell. “We expect this labor market rebalancing to continue,” Powell explained at the Jackson Hole Economic Symposium last week. “Evidence that the tightness in the labor market is no longer easing could also call for a monetary policy response.”

The post Stocks Close Mixed Following Unexpected Jobs Data appeared first on theprimarymarket.com.

Jefferies US economist Thomas Simons explained, “Given the tightness in the labor market, more supply is welcome, and sometimes it takes a little while for new entrants to find a fit.” Contrary to the upward trajectory in unemployment, the civilian labor force grew in numbers, adding 736,000 participants from the previous month. The labor force participation rate for August was 62.8%; its highest level since February 2020, when it reached 63.3%.

This latest jobs report has indicated a more balanced labor market, which is a good sign for the Federal Reserve as its September meeting approaches. This cooldown could be a factor in the argument to convince the central bank to hold off on further interest rate hikes.

The post Unemployment Hits 18-Month High in Latest Jobs Report appeared first on theprimarymarket.com.

The massive job gains have brought down the unemployment rate to 3.5%, returning the job market to its pre-pandemic levels. This jobless rate was last season in February 2020, when it marked the lowest point in almost 50 years.

Among other bits of info, the Bureau of Labor Statistics report also showed that Americans are earning 0.5% more per hour compared to an estimated 0.4%. Also, hourly earnings increased 5.2% year over year.

These numbers have caught experts by surprise as the Fed’s interest rate hikes and surging inflation were expected to cool off the U.S. labor market. However, it appears that the layoffs and job cuts mainly targeted the tech industry, with the service industry ramping up its hiring due to increased customer demand. A big part of the process was also businesses hiring back the employees they laid off during the pandemic.

Analysts now believe that these numbers will make the Fed even more aggressive with increasing interest rates. The committee is set to meet again in September when it might bump up the rates by another 0.7% points. This would be the third hike in the same range since June.

The post U.S. Labor Market Delivers a Surprise With Massive Job Gains appeared first on theprimarymarket.com.