April Job Report Preview: How Will Markets React To Latest Economic Data?
Portfolio Pulse from Piero Cingari
The April jobs report is anticipated to show a slight decrease in nonfarm payrolls to 243,000 from March's 303,000, with the unemployment rate expected to remain steady at 3.8%. Economists predict a minor slowdown in average hourly earnings growth year-on-year from 4.1% to 4%. The SPDR S&P 500 ETF Trust (SPY) historically reacts positively to strong jobs reports, with a notable exception in March when an unexpected rise in unemployment led to a negative return.
May 02, 2024 | 4:28 pm
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POSITIVE IMPACT
SPY, tracking the S&P 500, tends to rise with positive jobs reports. April's expected slight payroll decrease but steady unemployment may lead to a neutral or positive short-term impact, depending on the report's alignment with expectations.
SPY's performance is closely tied to economic indicators like the jobs report. Given its historical positive reaction to strong jobs data, a report in line with or exceeding expectations could boost SPY in the short term. However, the slight expected decrease in nonfarm payrolls introduces uncertainty, mitigated by the steady unemployment rate and the ETF's past resilience to similar scenarios.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90