Average Hourly Earnings (MoM) (Jan) +0.6% vs +0.3% Est.
Portfolio Pulse from Benzinga Newsdesk
The Average Hourly Earnings for January increased by 0.6%, doubling the estimated growth of 0.3%. This indicates a stronger than expected wage growth.
February 02, 2024 | 1:31 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience short-term volatility as the higher than expected wage growth could influence inflation expectations and monetary policy decisions.
Higher than expected wage growth can lead to increased consumer spending but also raises concerns about inflation. This can influence the Federal Reserve's decisions on interest rates, which directly impacts the stock market and ETFs like SPY. The exact direction of the impact is uncertain due to the balance between positive consumer spending and negative inflationary pressures.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75