Blowout May Jobs Data 'Closes The Door On A July Rate Cut': 6 Economists Make Best Guesses On Fed's Next Move
Portfolio Pulse from Piero Cingari
The U.S. labor market showed strong resilience in May with nonfarm payrolls increasing by 272,000, surpassing expectations. This led to a rise in Treasury yields and a rally in the U.S. dollar index, causing declines in long-dated bonds and gold. Economists suggest that the robust data closes the door on a July rate cut by the Federal Reserve, with some predicting the earliest rate cut could be in September or December.
June 07, 2024 | 3:45 pm
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NEGATIVE IMPACT
The SPDR Gold Trust (GLD) fell 2.5% due to rising Treasury yields and a strengthening dollar following the robust May jobs report.
The increase in Treasury yields and the strengthening of the dollar, both results of the strong jobs report, pressured gold prices, leading to a decline in GLD.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) dropped 1.8% due to rising Treasury yields following the strong May jobs report.
The strong jobs report led to a significant increase in Treasury yields, negatively impacting long-dated bonds like TLT.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80