The US economy unexpectedly shed 23,000 jobs in July, according to the Labor Department’s Bureau of Labor Statistics. This decrease, combined with a downwardly revised 20,000 increase in June, may raise questions about a potential interest rate hike by the Federal Reserve next month.
Market Reaction
Following the report, stock futures rose, with the Nasdaq composite set to rise 1.1% and the S&P 500 on track to add 0.5%. US Treasury yields fell, reflecting a rise in prices as rate-hike expectations ebbed.
Chief Economist Brian Jacobsen of Annex Wealth Management noted, ‘The Fed will have to tread carefully. Hiking rates hits manufacturing first and more than services.’ Anthony Saglimbene, Chief Market Strategist at Ameriprise Financial, stated, ‘Even with a negative job print, the job market remains healthy. But it gives the Fed some room to pause in September.’
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
