August Jobs Report Set To Move Markets: A Turning Point For Fed Policy?
Portfolio Pulse from Piero Cingari
The Bureau of Labor Statistics’ August jobs report is expected to show a slowdown in non-farm payroll growth from 187,000 in July to 170,000 in August, the slowest rate of employment expansion since December 2020. The unemployment rate is predicted to remain stable at 3.5%, and the growth in average hourly earnings is predicted to be steady at 4.4% annually. The report's results could influence the Federal Reserve's future actions, potentially impacting markets and the dollar. The Invesco DB USD Index Bullish Fund ETF (UUP) and the SPDR S&P 500 ETF Trust (SPY) could be affected.
August 31, 2023 | 4:35 pm
News sentiment analysis
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POSITIVE IMPACT
If the jobs report shows a slower than expected employment expansion, the market may believe that the Fed will leave interest rates unchanged, which could keep the bullish momentum going and potentially benefit the SPDR S&P 500 ETF Trust (SPY).
The jobs report is a key indicator of the health of the U.S. economy. If it shows a slower than expected employment expansion, the market may believe that the Fed will leave interest rates unchanged, which could keep the bullish momentum going. This would likely benefit the SPY, which tracks the performance of the S&P 500.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
If the jobs report shows a healthy and tight labor market, the Fed may continue to focus on fighting inflation, potentially strengthening the dollar and causing the Invesco DB USD Index Bullish Fund ETF (UUP) to outperform risky assets.
The jobs report is a key indicator of the health of the U.S. economy. If it shows a healthy and tight labor market, the Fed may continue to focus on fighting inflation, which could strengthen the dollar. This would likely benefit the UUP, which tracks the performance of the dollar.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80