Now Reading: S&P 500 hits record as weak jobs data cools rate-hike fears
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S&P 500 hits record as weak jobs data cools rate-hike fears
The US economy unexpectedly lost 23,000 jobs in July, well below the 80,000 gain expected, according to the Labour Department. This lowered market expectations of a Federal Reserve rate hike in September…
The Story in Brief
The US economy unexpectedly lost 23,000 jobs in July, well below the 80,000 gain expected, according to the Labour Department. This lowered market expectations of a Federal Reserve rate hike in September to 44%, down from 67% a week ago. The S&P 500 closed at a record high on Friday, and all three major indexes posted their biggest weekly gains since April. Strong corporate earnings, with 85% of S&P 500 companies beating estimates, also boosted sentiment. However, economist Tom Siomades noted the paradox of weak jobs and potential inflation, saying the market's rally defies logic.
The Indian Opinion
The narrative that bad news is good for markets because it delays rate hikes is convenient but ignores the contradiction: a cooling economy with persistent inflation. The Fed's new chair, Kevin Warsh, offers little guidance, leaving markets to dance on monthly data. The real test will be whether consumer spending holds up, or if this is a sugar rush before a slowdown.
Sources (2): livemint.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
