ADP Job Growth Soars By 500K, Jobless Claims Tick Higher: Traders Raise Fed Hike Bets
Portfolio Pulse from Piero Cingari
The U.S. job market continues to tighten with private employers adding 497,000 jobs in June, significantly beating expectations of 220,000, according to the ADP National Employment Report. However, weekly jobless claims rose slightly from 239,000 to 248,000. Following the release of this data, traders increased their forecasts for the Federal Reserve's impending rate hikes. The U.S. dollar rallied, erasing session losses, and Treasury yields spiked. Futures on the S&P 500 Index and the Nasdaq 100 Index dipped ahead of the Wall Street opening bell.
July 06, 2023 | 12:54 pm
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POSITIVE IMPACT
ADP's National Employment Report showed a significant increase in job additions in June, beating expectations.
The positive job growth data from ADP's report could boost investor confidence in the company, potentially leading to a short-term increase in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The U.S. dollar, tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), rallied following the release of the job data.
The rally in the U.S. dollar following the job data release could lead to a short-term increase in the value of UUP, which tracks the U.S. dollar.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80