Reported about 1 year ago
The rise in the US unemployment rate has increased the possibility of the Fed cutting rates in September, which is seen as positive news for the stock market. The latest employment report revealed that 206,000 jobs were added in June, exceeding the market's expectations of 190,000. However, concerns arise from the significant downward revisions of the employment data from the previous two months, indicating an overestimation of job growth by 111,000. Additionally, with the unemployment rate reaching 4.1% in June, slightly above expectations, it aligns with the 'Sahm Rule', suggesting an economic slowdown or recession. The weakening employment data may prompt the Federal Reserve to reconsider its monetary policy, potentially leading to a more accommodative stance.
Source: YAHOO