5 Experts On June Jobs Surprise: Data 'All But Ensures' Fed Rate Hike, Says 1 Economist
Portfolio Pulse from Piero Cingari
June's nonfarm payrolls (NFPs) data came in at 209,000, missing expectations of 225,000 jobs, marking the lowest print since December 2020. The unemployment rate decreased to 3.6%, while average hourly wages showed a 0.4% month-over-month increase, surpassing expectations of 0.3%. Small-cap stocks in the iShares Russell 1000 ETF (IWB) rose 0.7%, outperforming large caps in the SPDR S&P 500 ETF Trust (SPY), which fell 0.1%. Economists suggest the data indicates a resilient labor market and could lead to further rate hikes by the Fed.
July 07, 2023 | 2:03 pm
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POSITIVE IMPACT
The iShares Russell 1000 ETF (IWB) rose 0.7% following the release of the jobs report, outperforming large caps.
The rise in IWB's price is likely due to the unexpected increase in average hourly wages and the decrease in unemployment rate, which are positive indicators for the economy and thus for small-cap stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 0.1% following the release of the jobs report.
The fall in SPY's price is likely due to the missed expectations for the NFPs data, which could be seen as a negative indicator for the economy and thus for large-cap stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80