June Jobs Figures Beat Expectations But Unemployment Rate Rises With Slower Wage Growth - A Mixed Bag For Interest Rates
Portfolio Pulse from Piero Cingari
The June labor market report for the U.S. shows mixed conditions with robust job growth but slowing wage increases. The economy added 206,000 jobs, exceeding expectations, while the unemployment rate rose slightly to 4.1%. Wage growth decelerated, supporting expectations for potential interest rate cuts by the Federal Reserve. The market reacted positively, with futures on major U.S. indices rising.
July 05, 2024 | 3:01 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (NASDAQ:QQQ) closed at record highs ahead of the June jobs report. The positive market reaction to the report, with futures rising, suggests continued strength in tech-heavy indices.
The QQQ, which tracks the Nasdaq-100, is likely to benefit from the positive market sentiment following the June jobs report. The expectation of potential Fed rate cuts further supports tech stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) also closed at record highs ahead of the June jobs report. The positive market reaction, with futures rising, indicates a bullish outlook for the broader market.
The SPY, which tracks the S&P 500, is expected to benefit from the positive market sentiment following the June jobs report. The likelihood of Fed rate cuts supports a bullish outlook for the broader market.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80