The U.S. job market takes a surprising hit

🇺🇸 The U.S. economy unexpectedly 23,000 jobs —a gain of about 80,000.

The figures for May and June were also revised sharply downward: May from +129,000 to +63,000 (−66,000) jobs, and June from +57,000 to +20,000 (−37,000).

The unemployment rate fell to 4.1% (expected: 4.2%)—though this was primarily because fewer people are even looking for work.

Wage growth fell to 3.2% —the lowest level since May 2021.

What does this mean for the stock market?

Until yesterday, most markets were still anticipating a interest rate hike in September—but following the data release, that probability has now fallen significantly, a holding the key interest rate is now the more likely scenario.

In the short term, this is positive, but it is important to continue monitoring how the labor market performs in the future. Should it take a sharp turn for the worse, recession fears could dash hopes of interest rate cuts.

$CSPX (-0,62%)$CSNDX (-0,99%)

Source:

www.bls.gov/news.release/empsit.nr0.htm